PPI Climbs Modestly as Services Prices Hold Steady

The US Producer Price Index (PPI) for final demand rose 0.5% in March, continuing steady monthly increases after gains in February and January, reports the US Bureau of Labor Statistics. On a year-over-year basis, prices increased 4.0%, marking the largest annual rise since February 2023.

The increase was driven primarily by a sharp 1.6% rise in goods prices, led by an 8.5% jump in energy costs, particularly gasoline. Food prices declined slightly, while services prices remained flat overall.

Core inflation (excluding food, energy, and trade services) rose 0.2% in March and 3.6% over the past year, reflecting persistent underlying price pressures despite mixed trends across sectors such as transportation, retail, and healthcare services.