U.S. Producer Prices Up 0.5% in March, Below Forecast

U.S. producer prices rose less than anticipated in March, offering a measure of relief amid surging energy costs from the ongoing war with Iran. The Bureau of Labor Statistics reported Tuesday that the Producer Price Index for final demand increased 0.5 percent on a monthly basis, falling short of economists' median forecast for a 1.1 percent gain. The figure matched a downwardly revised 0.5 percent rise in February.

The annual PPI climbed 4.0 percent through March, the largest 12-month advance since February 2023 and up from 3.4 percent in the prior month. Goods prices drove the monthly increase, jumping 1.6 percent, the biggest gain since August 2023. Energy costs led the surge, rising 8.5 percent after a 2.1 percent increase in February, with gasoline prices soaring 15.7 percent and jet fuel up 30.7 percent. Natural gas liquids also increased 14.4 percent. In contrast, wholesale food prices dipped 0.3 percent, pulled lower by declines in vegetables, eggs and processed chickens, though grains rose 7.6 percent and beef and veal costs gained 2.2 percent.

Services prices held steady for the month, following a 0.3 percent rise in February. A 1.3 percent increase in transportation...