The Producer Price Index (PPI), which measures inflation on the wholesale level, rose 0.2% in April, coming in below expectations of 0.3%. On an annual basis, PPI fell from 2.7% to 2.3%. Core PPI, which strips out volatile food and energy prices, also rose 0.2% with the year-over-year reading dropping from 3.4% to 3.2%.

What’s the bottom line? Annual wholesale inflation readings have made significant improvement as they continue to move lower in the right direction. At its peak last March, PPI was at 11.7% year-over-year and it is now at 2.7%, which is a decline of 9%!