Producer Price Index Increased 1% in March 2021

The U.S. Bureau of Labor Statistics (BLS) is reporting that the Producer Price Index (PPI) for final demand, seasonally adjusted increased 1.0% in March. Final demand prices rose 0.5% in February and 1.3% in January. On an unadjusted basis, the final demand index moved up 4.2% for the 12 months ended in March, the largest advance since rising 4.5% for the 12 months ended September 2011. In March, almost 60% of the increase in the index for final demand can be traced to a 1.7% advance in prices for final demand goods. The index for final demand services moved up 0.7%. Prices for final demand less foods, energy, and trade services rose 0.6% in March following an increase of 0.2% in February. For the 12 months ended in March, the index for final demand less foods, energy, and trade services moved up 3.1%, the largest advance since climbing 3.1% for the 12 months ended September 2018. Over one-fourth of the March increase in the index for final demand goods can be traced to an 8.8% jump in gasoline prices. The indexes for diesel fuel, residential electric power, industrial chemicals, steel mill products, and processed poultry also moved higher. In contrast, beef and veal prices fell -4.3%. The indexes for fresh and dry vegetables and for surgical and medical instruments also declined.