Producer prices rose less than anticipated in March, as the Middle East conflict’s effect on energy prices renewed concerns about a possible inflation spike.
According to the latest report by the Bureau of Labor Statistics, on an unadjusted basis, the index for final demand rose 4.0 percent for the 12 months ended in March, the largest 12-month advance since increasing 4.7 percent in February 2023.
The producer price index, which measures pipeline costs for final demand goods and services, rose seasonally adjusted 0.5% for the month, well below the Dow Jones consensus estimate of 1.1%.
Excluding food and energy, core PPI increased only 0.1% compared to the forecast of 0.5%.
Core PPI posted a 3.8% yearly gain. Excluding food, energy, and trade services, PPI increased 0.2% month-to-month and 3.6% year-over-year.
The increase in producer prices was lower than the 0.9% gain in the prices consumers actually paid that month. Core consumer prices also remained soft, rising only 0.2%.
The Producer Price Index for April 2026 is scheduled to be released on May 13, 2026.
By CEO NA Editorial Staff
