March PPI Inflation Data Released: What You Need to Know
The latest Producer Price Index (PPI) data for March has been released, providing key insights into inflationary trends at the wholesale level.
The U.S. Producer Price Index (PPI) for final demand decreased 0.4% in March, seasonally adjusted, following increases of 0.1% in February and 0.6% in January, according to the U.S. Bureau of Labor Statistics. On an unadjusted basis, the PPI for final demand rose 2.7% over the 12 months ending in March, indicating a more moderate inflationary trend compared to previous months.
The March decline was largely driven by a 0.9% drop in prices for final demand goods, which accounted for over 70% of the decrease. Meanwhile, the index for final demand services also saw a decrease, falling 0.2%.
In a more detailed breakdown, the core PPI—excluding food, energy, and trade services—edged up by 0.1% in March. This marked a slowdown from the 0.4% increases observed in each of the previous three months. On a year-over-year basis, the core PPI rose by 3.4%, showing a more consistent trend in underlying price pressures.
Despite the overall decline in March, these numbers suggest a mixed inflationary picture, with the core index remaining elevated while price drops in goods and services were more prominent. The data may influence expectations around future Federal Reserve policy decisions as they continue to assess inflation trends.
Consumer Prices Show Unexpected Decline in March
In contrast to the rising producer prices, the Consumer Price Index (CPI) for March revealed a 0.1% month-over-month decrease, marking the first decline since May 2020.
Year-over-year, the CPI increased by 2.4%, down from February’s 2.8% rise. The core CPI, which excludes volatile food and energy prices, saw a modest 0.1% monthly increase and a 2.8% annual rise—the smallest since March 2021.
This unexpected easing in consumer inflation was largely driven by a significant 6.3% drop in gasoline prices and a 5.3% decline in airline fares.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
