UPDATE - US producer inflation significantly eases to 2.7% in March

ADDS WHITE HOUSE STATEMENT, CONSUMER INFLATION DATA

By Ovunc Kutlu

ISTANBUL (AA) - US annual producer inflation significantly eased to 2.7% in March, according to Labor Department data released Thursday.

The figure marks a sharp slowing from February's annual gain of 4.9%, which was revised up from a 4.6% increase.

It is also a significant retreat from the record annual jump of 11.7% in March last year.

The producer price index (PPI), which measures changes in the price of goods and services from a producer perspective, was lower than market estimates of 3% increase.

On a monthly basis, the PPI fell 0.5% in March, also coming lower than expectations of a 0.1% gain. The February figure was a decline of 0.1%.

"In March, two-thirds of the decline in the index for final demand can be attributed to a 1.0- percent decrease in prices for final demand goods," the Labor Department said in a statement.

Core producer prices, which exclude food, energy and trade, moved up 0.1% in March after rising 0.2% in February.

Core PPI in March climbed 3.6% on an annual basis, following a 4.5% rise in February.

White House Press Secretary Karine Jean-Pierre later said in a statement the annual inflation rate for producers is the lowest in more than two years.

"On average, prices set by businesses actually fell last month. This follows yesterday’s news that inflation for consumers is down substantially from its peak last summer," she added.

Annual consumer inflation in the US came in at 5% in March, significantly easing from 6% in February, according to official figures released Wednesday.

The figure was the smallest 12-month increase since the period ending May 2021, while it marked a sharp decline from June's 9.1% yearly gain.

On a monthly basis, it rose 0.1% in March, while the figure for January was unrevised at an increase of 0.4%.