Indices in the US point to signs of deflation

According to the latest report in the US, producer prices dropped unexpectedly in March, probably due to falling gasoline prices and lower core inflation. The producer price index for final demand fell 0.5%, the smallest year-on-year increase since the beginning of 2021. PPI was expected to rise by 3.0%, but economists were proven wrong. Despite this, core inflation remains high, and food prices jumped 0.6%. The Fed is likely to raise rates by another 25 basis points at its meeting in May.