Prices paid to US producers for consumer goods fell sharply in January even as the overall producer price index posted its largest gain in four months, revealing a stark divergence that undermines claims that tariffs are squeezing American households.
Finished consumer goods declined 1.3 percent from December, the steepest drop since March 2025, according to Bureau of Labor Statistics data released Friday. The decrease was driven by broad-based weakness across durables and nondurables, with prices for passenger cars, trucks, furniture, appliances and apparel all flat or falling.
The consumer goods deflation came even as the headline PPI…
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