Table 2 Changes in Price Levels (March 2025)
12-Month % Change
1-Month % Change
Consumer Price Index (1982 - 84 = 100) Core CPI (CPI Less Food and Energy)
2.4 2.8 2.3 2.7
0.2 0.2 0.0
Personal Consumption Expenditures Price Index
Producer Price Index (PPI)
-0.4
Description: • Consumer Price Index: Measures the average monthly change in the price of a representative basket of goods and services bought by consumers. • Core CPI (CPI less food & energy): Measures the average monthly change in prices for a typical basket of goods, excluding food and energy. • Personal Consumption Expenditures Price Index (PCE): Captures monthly changes in price levels over a wider range of consumer expenditures that account for changes in consumer behavior. • Producer Price Index (PPI): Measures the average change in selling prices received by domestic producers for their output. Output includes intermediate goods along with final goods and services. Analysis: • The 2.4 % annual increase in the CPI in March shows a continued decline from the 3.0% figure in January. • The annual increase in Core CPI of 2.8%, which excludes the highly volatile sectors of food and energy, similarly shows an encouraging moderation since January and last year. • The Personal Consumption Expenditures Price Index is the inflation measure the Federal Reserve follows the most closely increased by 2.3% over the last year in March is a welcome decline from higher readings the previous three months. • The PPI tracks changes in prices that upstream manufacturers and wholesalers pay for goods during different stages of production. It often can be seen as a leading indicator for future inflation at consumer level. The annual increase in the PPI of 2.7% shows a decline over the last two months but remains higher than the increases seen last year.
Central Wisconsin Report - Spring 2025
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