U.S. Producer Price Index (PPI) for Final Demand
U.S. producer prices rose by 2.1% over 12 months through March, with a monthly increase of 0.2%. Core PPI, excluding food and energy prices, rose 0.2% annually. 'Core core' PPI, which excludes trade services, food, and energy prices, rose 0.2% monthly and 2.8% annually. Services prices rose 0.3% monthly and 2.8% annually, while goods prices declined by 0.1% in March. The index measures prices from the seller's perspective and excludes taxes and subsidies.
Key Points
- Core PPI rose 0.2% monthly and 2.4% annually
- 'Core core' PPI rose 0.2% monthly and 2.8% annually
- Services prices up 0.3% monthly and 2.8% annually
- Goods prices declined by 0.1% in March
Pros
- Steady increase in producer prices over the year
- Better-than-expected monthly increase in core PPI
Cons
- High rate of inflation in services prices
- Decline in goods prices driven by energy prices