BLS: US PPI Rises 0.5% in March on Higher Energy Prices

SECAUCUS, NJ (DTN) – The Producer Price Index (PPI) for final demand advanced 0.5% in March, following a 0.7% increase in February, the U.S. Bureau of Labor Statistics (BLS) reported Tuesday (4/14).

Market consensus expected a 1.1% increase in March, but the rise in services costs and in core producer prices – final demand excluding food, energy, and trade – was lower than expected.

The March increase was led by a 1.6% rise in prices for final demand goods. Most of that increase can be traced to an 8.5% jump in the index for final demand energy, BLS said. The index for final demand services, in contrast, was unchanged.

Year-on-year, PPI for final demand was up 4.0% in March versus 3.4% in February.

Core PPI for final demand, which strips out volatile food and energy components as well as trade services, rose 0.2% in March after growing 0.5% in February.