US producer prices rise more than expected in March

(Sharecast News) - US producer prices rose more than expected in March, according to the Bureau of Labor Statistics, with the producer price index for final demand increasing 0.5% on the month, matching February's gain and following a 0.6% rise in January. On an unadjusted basis, final demand prices were up 4.0% in the year ended 31 March - the strongest annual increase since February 2023.

The monthly rise was driven by a 1.6% increase in final demand goods, the largest since August 2023, while prices for final demand services were unchanged. Excluding food, energy and trade services, the core index rose 0.2% in March after two consecutive 0.5% increases.

Core prices were up 3.6% year‑on‑year, matching the fastest pace since November 2025.

Energy costs were the main driver of goods inflation, with final demand energy prices jumping 8.5%. Gasoline surged 15.7%, accounting for nearly half of the overall increase, diesel fuel, jet fuel, heating oil, meats and primary basic organic chemicals prices also rose.

In contrast, food prices slipped 0.3%, with fresh and dry vegetables down 10.7%, while natural gas and carbon steel scrap prices also declined.

Final demand services were flat on the month, as a 1.3% rise in transportation and warehousing services and a small uptick in services excluding trade, transportation and warehousing offset a 0.3% drop in trade margins.

Airline passenger services rose 2.8%, alongside gains in food retailing, apparel and accessories retailing, outpatient care and truck freight, while margins for food and alcohol wholesaling fell 6.0%, as did fuels and lubricants retailing, securities brokerage, deposit services and residential brokerage fees.









Reporting by Iain Gilbert at Sharecast.com