Producer Prices Declined 0.1 Percent in March

Producer prices fell 0.1 percent in March, seasonally adjusted, after falling 0.2 percent in February, according to the U.S. Bureau of Labor Statistics. March’s decrease was attributable to lower prices for final demand services.

Prices for final demand services fell 0.2 percent, marking the first decline since October 2015. Eighty percent of the decline in final demand services could be traced to a 0.5 percent decrease in margins for final demand trade. The index for final demand transportation and warehousing services also fell, dropping 0.3 percent.

The index for final demand goods moved up 0.2 percent, following eight consecutive declines. Most of the increase could be traced to prices for final demand energy, which rose as gasoline prices increased by 7.1 percent. The index for final demand goods less foods and energy moved up 0.1 percent, while final demand foods fell 0.9 percent.

Read the BLS release.

About Tim Nicholson

Tim Nicholson
Tim Nicholson is an economic research associate at ABA.
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