The data should give the Fed some relief as it struggles to tame inflation.


Producer inflation
In a separate report from the Bureau of Labor Statistics on Wednesday, producer inflation eased for the second time in three months, dropping by 0.1% in February. January’s number was also revised downwardly, from 0.7% to 0.3%. Core producer prices that exclude food and energy were unchanged on the month, while the trade component, which is a proxy for retail and wholesalers’ profit margins, continued to plunge, down by 0.8% after a 1.1% decline in January. As demand continues to slow and supply chains improve, firms are facing thinner profit margins, which becomes even more problematic if sticky inflation is taken into account.