U.S. producer prices and retail sales both declined in February, giving Federal Reserve officials more room to potentially pause interest-rate hikes as they weigh the impact of a banking crisis against inflation risks.
The producer price index, a measure of wholesale costs, unexpectedly fell 0.1% from the prior month, suggesting inflation pressures are easing in parts of the economy, Labor Department data showed Wednesday.
A separate Commerce Department report showed retail sales declined 0.4% from the previous month following a surge in January, a sign that consumers are becoming more discerning with spending amid rising interest rates and persistent inflation.
