The Producer Price Index for final demand decreased 0.4% in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.1% in February and 0.6% in January. On an unadjusted basis, the index for final demand advanced 2.7% for the 12 months ended in March.
Prices for final demand less foods, energy, and trade services edged up 0.1% in March after increasing 0.4% in each of the previous 3 months. For the 12 months ended in March, the index for final demand less foods, energy, and trade services advanced 3.4%.
Prices for final demand goods moved down 0.9% in March, the largest decrease since falling 1.4% in October 2023. Two-thirds of the March decline in the index for final demand goods can be traced to an 11.1% drop in prices for gasoline. The indexes for chicken eggs, beef and veal, fresh and dry vegetables, diesel fuel, and jet fuel also moved lower. Conversely, prices for steel mill products increased 7.1%.
Prices for final demand services fell 0.2% in March, the largest decline since moving down 0.2% in July 2024. Leading the March decrease, margins for final demand trade services dropped 0.7%. A 1.3-percent decrease in the index for machinery and vehicle wholesaling was a major factor in the March decline in prices for final demand services. The indexes for airline passenger services; food retailing; apparel, jewelry, footwear, and accessories retailing; automobiles retailing (partial); and guestroom rental also moved lower. Conversely, prices for legal services rose 1.5%. The indexes for chemicals and allied products wholesaling and for long-distance motor carrying also advanced.
Read the BLS release.
