The Producer Price Index for final demand declined 0.5% in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in February and increased 0.4 percent in January. On an unadjusted basis, the index for final demand advanced 2.7 percent for the 12 months ended in March.
In February, the decline in the final demand index was led by prices for final demand goods, which fell 1.0%. The index for final demand services moved down 0.3%.
Prices for final demand goods decreased 1.0% in March after falling 0.3% in February. The March decline is attributable to the index for final demand energy, which dropped 6.4%. In contrast, prices for final demand goods less foods and energy and for final demand foods advanced 0.3% and 0.6%, respectively.
Prices for final demand services moved down 0.3% in March, the largest decline since falling 0.5% in April 2020. Leading the March decrease, margins for final demand trade services dropped 0.9%. The index for final demand transportation and warehousing services fell 1.3%. In contrast, prices for final demand services less trade, transportation, and warehousing edged up 0.1%.
Read the BLS release.
