U.S. Producer Prices Decline for First Time Since August 2016

Wholesale prices in the U.S. declined in March for the first time since August 2016, a sign broader inflation will accelerate only gradually, a Labor Department report showed Thursday.

A tempering of wholesale prices indicates price pressures are only slowly building in the production pipeline as stabilization in the global economy generates more demand for industrial materials. While inflation met the Federal Reserve’s 2 percent goal in February, according to the central bank’s preferred measure, some officials focus more on the gauge excluding food and energy, which is still below their target.