BREAKING: Inflation fell to 6% in January in producer price index
That year-over-year inflation rate was down from 6.2% the month before and was still higher than what forecasters expected.
Looking at the past several months, it appears as though inflation peaked and is on its way down, which is a bit of good news for President Joe Biden, whose approval ratings have been undercut by soaring costs for households. Annual wholesale inflation previously peaked in March, clocking in at 11.7%. Trends in producer prices eventually trickle down to households.The report comes just days after an update to the more closely watched consumer price index showed inflation falling only slightly, dropping from 6.5% in December to 6.4% last month. The headline number was higher than what most economists had expected and has raised concerns about more interest rate hikes by the Federal Reserve and a subsequent recession.
After a barrage of four consecutive three-quarter-point rate hikes last year, the Fed eased off the gas a bit during its December meeting and opted for a half-point hike and then announced an even milder quarter-point hike earlier this month. The normal effect of raising rates is that the economy and, ultimately, the labor market will slow down. Despite the major increase in interest rates over the past year or so, the job market has proven resilient.The economy recorded another 517,000 jobs in January, the Bureau of Labor Statistics reported. A robust performance that shows commerce is holding up despite the rate hiking. The unemployment rate also unexpectedly fell to 3.4%, the lowest rate since 1969.
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