Economists have kept predicting the worst for the United States economy since President Donald Trump began his tariff policy, and they continue to be proven wrong.

The price for wholesale goods, as measured by the Producer Price Index, fell 0.5 percent in April which marked its largest drop in five years, the U.S. Bureau of Labor Statistics reported.

It is the first time since October of 2023 that the Producer Price Index has fallen at all, The Associated Press reported.

“Excluding volatile food and energy prices, so-called core wholesale prices dipped 0.4% from March and rose 3.1% from a year earlier. Economists had forecast that producer prices rose modestly in April,” the report said.

“Services prices fell 0.7%, the biggest drop in government records going back to 2009, on shrinking profit margins at wholesalers and retailers. Wholesale food prices fell 1%, and egg prices plunged 39%, though they are still up nearly 45% from a year ago because of bird flu,” it said.

The annual inflation rate in April was lower than analysts anticipated, reaching 2.3%, the lowest since February 2021.

The Labor Department reported Tuesday that the consumer price index increased by a seasonally adjusted 0.2% in April, according to CNBC. Although this represented a slight rise from the 0.1% year-over-year decline recorded in March, April’s 2.3% inflation rate still came in slightly below economists’ expectations of 2.4%.

The positive inflation data provided President Donald Trump with favorable economic news shortly after his “Liberation Day” tariffs took effect. The White House highlighted the figures on X, attributing them to the “TRUMP EFFECT.”

“For the last several years, hardworking families have faced an affordability crisis. Finally, with @POTUS at the helm, Americans are breathing a sigh of relief — every dollar is going further and workers are able to keep more of their hard-earned paychecks!” Labor Secretary Lori Chavez-DeRemer added.

Food prices decreased slightly by 0.1% from March to April, driven largely by a 12.7% drop in egg prices. Used car prices also declined during April. Meanwhile, the consumer price index reported that energy costs rose 0.7% month-over-month, shelter costs increased 0.3%, and new car prices remained unchanged.