Read the highlights of this week’s commentary from Helios:
- February’s CPI report showed inflation cooling, with headline inflation slowing to 0.2% from 0.5% in January, bringing the annual rate to 2.8%. Lower car and gas prices helped, but egg prices jumped 10.4% from January due to supply disruptions. Looking ahead, escalating trade tensions could drive up costs, putting pressure on consumers and the broader economy.
- The US Producer Price Index (PPI) remained unchanged in February, largely because trade service margins fell by 1%, reducing profits for wholesalers and retailers. While the headline PPI remained flat, new tariffs on imports will continue to raise concerns about rising prices in the coming months.
- The University of Michigan’s preliminary consumer sentiment index for March dropped to 57.9 from 64.7 in February, the lowest since November 2022. This decline reflects growing consumer concerns about the economy, particularly inflation and policy uncertainty. Short-term inflation expectations rose to 4.9%, while long-term expectations surged to 3.9%, the highest since 1993.
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