the spdr sp 500 spy is rising thursday morning after new data showed that us producer prices fell more than economists expected last month another sign the federal reserves aggressive response to high inflation is starting to take effect what happened the producer price index ppi fell 05 in march according to new data the labor department released thursday the number came in below average economist forecasts for a 01 increase the coolerthanexpected ppi print comes on the heels of a 01 decline in february which was well below expectations and down from a 03 increase in january on a yearoveryear basis the ppi number came in at 27 versus estimates of 3 excluding volatile food energy and trade prices ppi decreased 01 why it matters the fed is due to make its next decision on rates next month before cpi and ppi for april is released so this will be the last look at pricing data the fed will get to see before it runs its next play thursdays print comes in the wake of a coolerthanexpected cpi number the headline cpi for march came in at 5 yearoveryear this week which was down from 6 in february and below economist forecasts of 52 core cpi came in as expected at 56 minutes from the feds last meeting showed the committee remains committed to its 2 inflation goal and anticipates that some additional firming may be appropriate fed members also noted that they would continue to analyze incoming data in a press conference following the committees last decision on rates fed chair jerome powell said there are real costs to bringing inflation down to 2 but the costs of failing are much higher the market is projecting a 665 chance of another 025 rate hike next month and a 335 chance of a pause according to the cme groups fedwatch tool the fed is due to make its next move in its historic fight against inflation on may 3 spy price action the spy was up 027 at 40917 at the time of writing according to benzinga pro