On May 15, local time, the U.S. Department of Labor announced that after adjustment, the Producer Price Index (PPI) in the United States decreased by 0.5% month-on-month in April 2025.

Year-on-year, it increased by 2.4%, with an expectation of 2.5%, while the previous value was revised from 2.7% to 3.4%. This indicates that the momentum of rising prices in the United States has eased.

In addition, data released the same day by the U.S. Department of Commerce showed that retail sales in the U.S. grew by only 0.1% month-on-month in April and increased by 5.2% year-on-year, far below the month-on-month growth of 1.7% in March, indicating a significant lack of consumer spending power.

Typically, when price increases slow down, consumer spending should be more active, but the reality is that retail data is performing poorly.

The reason lies in the fact that although Trump's tariff policy has not been implemented, the public is worried about rising prices of imported goods, leading to preemptive stockpiling that consumes funds in advance.

Now, consumers may either be empty-pocketed or feel that there is no need to stock up, and thus begin to cut back on spending.

With low consumer spending willingness, merchants are hesitant to raise prices, and the production and wholesale sectors also lack vitality, consequently dragging down the PPI data.

From this data alone, it seems that the United States may be showing signs of deflation while the inflation issue remains unresolved.

Currently, the U.S. economy faces a dilemma: inflation risks have not dissipated, yet the economy shows signs of cooling.

Who is to blame? Trump hopes for an economic slowdown to prompt the Federal Reserve to cut interest rates; however, Fed Chairman Powell is unmoved by this.

In the face of such a situation, the future direction of the U.S. economy is indeed a matter of concern.