Friday, 10 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > US producer prices tumble in April as tariffs squeeze profit margins
Economy

US producer prices tumble in April as tariffs squeeze profit margins

Last updated: May 15, 2025 9:56 am
Share
US producer prices tumble in April as tariffs squeeze profit margins
SHARE

Stay Updated on US Inflation Trends

Sign up for the US inflation myFT Digest to receive free updates directly to your inbox. Stay informed on the latest developments in the US economy, including changes in wholesale prices, consumer price index, and more.

In April, US wholesale prices experienced the most significant drop in five years, signaling a historic decline in profit margins. Despite the imposition of higher tariffs by the Trump administration, businesses have been hesitant to pass on these costs to consumers. The producer price index fell by 0.5% month-on-month, the largest decrease since April 2020. Economists had anticipated a 0.2% increase, making this unexpected drop a cause for concern.

The core PPI, which excludes volatile food and energy prices, also saw a significant decline of 0.4%, the largest since 2015. Year-on-year increases in both headline and core PPI eased to 2.4% and 3.1%, respectively. This data indicates that businesses are absorbing the impact of tariffs on their profit margins rather than passing it on to consumers.

The drop in PPI was largely attributed to a 0.7% decrease in services prices, the most significant monthly drop since the index’s inception in 2009. A substantial portion of this decline was linked to margins for final demand trade services, highlighting the squeeze on profit margins faced by wholesalers and retailers.

Economists are closely monitoring inflation indicators to assess the effects of tariffs on the US economy. While the recent data suggests limited inflationary pressure, the looming impact of tariffs remains a concern. Retail giant Walmart has already warned of potential price increases for consumers due to tariffs.

See also  Dollar gains after Trump vows tariffs against Mexico and Canada

Despite the cooling inflation reports, the Federal Reserve faces a communication challenge as it navigates the impact of tariffs on interest rates. With uncertainties surrounding the trade war, the Fed is cautious in its approach to monetary policy.

In addition to the PPI data, other economic indicators released in April include a 0.1% increase in retail sales and flat industrial production. These figures reflect the ongoing impact of tariffs on consumer behavior and industrial output.

Stay informed on the latest economic trends by signing up for the US inflation myFT Digest. Receive free updates on inflation, tariffs, and other key indicators shaping the US economy.

TAGGED:AprilmarginsPricesProducerprofitsqueezeTariffstumble
Share This Article
Twitter Email Copy Link Print
Previous Article Wild Chimps Appear to Administer ‘First-Aid’ to Each Other : ScienceAlert Wild Chimps Appear to Administer ‘First-Aid’ to Each Other : ScienceAlert
Next Article The Importance of Theory: Trade, Jobs, and Wages The Importance of Theory: Trade, Jobs, and Wages
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

The foul-mouthed cockatoo that lived to 120

What’s the weirdest thing you learned this week? Well, whatever it is, we promise you’ll…

May 21, 2025

See Where Federal Dollars Flow to Universities Around the Country

The Trump administration’s recent decision to freeze federal funding to universities has sent shockwaves through…

April 30, 2025

How Greenland sharks live for hundreds of years without going blind

Greenland Sharks’ Eyes Show Remarkable Resilience to Aging Greenland sharks’ eyes don’t seem to deteriorate…

May 1, 2025

“FAFO”: Top Trump Aide Dan Scavino Calls Out James Comey for Posting “a Plea to Bad Actors/Terrorists to Assassinate the POTUS While Traveling Internationally” |

Scavino Accuses Comey of Inciting Violence Against Trump In a recent turn of events, Dan…

May 16, 2025

How incarceration affects mortality — for people both inside and out

The recent news surrounding the CDC's chronic disease unit and the proposed budget for 2026…

June 4, 2025

You Might Also Like

Meme stock resurgence prompts return of central meme investment fund
Economy

Meme stock resurgence prompts return of central meme investment fund

October 10, 2025
Sugar Prices Retreat on a Forecast for a Global Sugar Surplus
Economy

Sugar Prices Retreat on a Forecast for a Global Sugar Surplus

October 10, 2025
Nvidia Stock Got Rocked by AMD’s OpenAI Deal, But Wall Street Still Loves NVDA
Economy

Nvidia Stock Got Rocked by AMD’s OpenAI Deal, But Wall Street Still Loves NVDA

October 10, 2025
Geopolitical Risk Supports Gains in Oil Futures
Economy

Geopolitical Risk Supports Gains in Oil Futures

October 10, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?