US Producer Prices Take a Unexpected Dip in March

In a surprising turn of events, the United States producer price index (PPI) for final demand experienced a 0.4% decrease in March compared to the previous month, as reported by the Bureau of Labor Statistics this Friday. Annually, however, producer prices have seen a 2.7% increase.

Breaking Down the Numbers

Goods vs. Services: The monthly decline was primarily driven by a 0.9% drop in prices for final demand goods, accounting for over 70% of the decrease. Meanwhile, the services PPI saw a modest 0.2% loss in March.

Core PPI Rises: Excluding the volatile categories of foods, energy, and trade services, producer prices edged up by 0.1% on a monthly basis and showed a more significant 3.4% increase year-on-year.