Wholesale prices in the United States have just plunged to their lowest level in five years, marking a major win for President Donald Trump’s economic agenda.
The Producer Price Index (PPI) fell 0.5% in April, the U.S. Bureau of Labor Statistics (BLS) reported on Thursday.
The index measures the average change over time in selling prices received by domestic producers.
The figure marks the biggest PPI drop in five years
It is also the first time that the PPI has declined since October 2023.
Since last April, producer prices rose 2.4% under former President Joe Biden.
However, even that figure was a significant deceleration from the 3.4% year-over-year gain in March, according to the Associated Press.
The producer price drop defies economists’ predictions.
Economists had forecast that producer prices would rise last month.
Services prices, the prices charged by domestic producers for the services they provide, dropped 0.7% in April.
This was the biggest drop since the index began in December 2009, according to the BLS.
Wholesale food prices dropped 1% last month, including a 39% drop in egg prices.
The report is the second round of economic news being celebrated by the Trump administration this week.
On Tuesday, the Labor Department