US Producer Price Index for Final Demand Increases Month-Over-Month and Year-Over-Year in March

On Thursday, the Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.2% in March. This follows a 0.6% increase in February. On an unadjusted basis, the index for final demand rose 2.1% for the 12-month period ending in March, the largest increase since a 2.3% gain in April 2023.

The March advance in the index for final demand is attributable to a 0.3% increase in final demand services. In contrast, the index for final demand goods inched 0.1% lower.

The index for final demand less food, energy, and trade services increased 0.2% in March, following a 0.3% increase in February. For the 12-month period ending in March, prices for final demand less foods, energy, and trade services increased 2.8%—the same as in February.