Inflation fell to 4.6% in February in producer price index

Inflation pThe producer price index measured that February’s annual rate was 4.6%, and the market pushed for it to be higher.

The Bureau of Economic Analysis reported Wednesday morning a decline in the wholesale price indicator, indicating that inflationary pressures have abated in light of Federal Reserve’s campaign of slowing economywide spending through raising interest rates.

However, inflation is still much higher than the central banks target and household purchasing power is declining.

Producers eventually pay the same prices as households.

SVB COLLAPSE: WAS THIS A BAILOUT

The Fed has set a 2% inflation target.

The recent high inflation has weakened household purchasing power and undermined support for President Joe Biden’s economic agenda.

Wednesday’s PPI report is released a day after the release of the consumer price index. This index is closely watched.

The annual inflation rate fell to 6.4% from 6.4% the month prior. Annual inflation has been trending downward since June when it reached 9.1%. However, recent month to month price gains have been large, suggesting that the Fed has not succeeded in controlling inflation.

CLICK HERE FOR MORE INFORMATION FROM THE WASHINGTON XAMINER

The Federal Deposit Insurance Corporation on Friday announced that the inflation data would be available. Silicon Valley BankSVB (also known as SVB) had failed and was taken into government hands. Signature Bank on Sunday followed. Over the weekend, officials assured that the banking system is sound.

The Fed will meet next Wednesday to decide whether to raise rates. There are mixed opinions about whether the Fed should raise rates at all after SVB’s fall and, if so how much.