Highlights
- March final demand prices fell 0.5%
- Prices for final demand goods dropped 1.0%
- Final demand services decreased by 0.3%
Overview
The U.S. Bureau of Labor Statistics reported today that the Producer Price Index for final demand, seasonally adjusted, experienced a 0.5 percent decline in March. Traders were looking for an unchanged reading.
Meanwhile, Core PPI for March dropped 0.1% versus a +0.2% estimate.
In February, final demand prices were unchanged, while in January, they increased by 0.4 percent. Over the 12 months ending in March, the index for final demand advanced by 2.7 percent on an unadjusted basis. Economists were expecting annual inflation, as measured by the PPI, to land at 3% for the 12 months ended in March.
In March, a 1.0 percent decrease in prices for final demand goods accounted for two-thirds of the decline in the index for final demand. The index for final demand services decreased by 0.3 percent.
After a 0.2 percent increase in February, prices for final demand less foods, energy, and trade services rose by 0.1 percent in March. For the 12 months ending in March, the index for final demand less foods, energy, and trade services rose by 3.6 percent.
For a look at all of today’s economic events, check out our economic calendar.
