U.S. inflation data just came in way below expectations, signaling a potential shift in economic pressures.
March PPI Data Highlights
Producer Price Index (PPI):
๐น FELL to 2.7% YoY, vs. 3.3% expected
๐น This is a major surprise to the downside
๐น First monthly decline (-0.4%) since March 2024
Core PPI (excludes food & energy):
๐น Dropped to 3.3% YoY, below the 3.6% forecast
๐น Indicates broad-based disinflation across sectors
CPI and PPI Both Dropping Fast
๐น CPI inflation also came in below expectations this week
๐น Both headline and core readings are cooling sharply
๐น The Fed is under increasing pressure to pivot or pause
Market Implications
๐น Rate cut odds are rising for upcoming FOMC meetings
๐น Expect stronger risk asset moves โ especially tech, crypto, and growth stocks
๐น This could be the early signal that the inflation fight is nearing its end
Stay sharp โ the market is watching closely, and opportunities are emerging.
