Following a similar decline to the Consumer Price Index reported a day earlier, U.S. producer prices decreased during March after a previously flat month, according to the latest government data.

The Bureau of Labor Statistics released its monthly Producer Prices Index report on April 11, showing that final demand decreased 0.4% during March, following an unchanged February and a 0.6% increase in January.

Economists surveyed by Dow Jones expected a monthly increase of 0.2%. It was the first decline for PPI since October 2023.

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March’s decline was impacted predominantly by prices for final demand, which declined 0.9%, while the index for final demand services likewise declined by 0.2%.

On an annual basis, March’s PPI increased by 2.7% — decelerating from 3.2% in March and 3.5% in January.

U.S. Producer Price Index Month-to-Month

source: tradingeconomics.com

The PPI tracks average price shifts at the wholesale level before they reach consumers.

Core PPI — which excludes volatile food and energy categories — rose 0.1% during March month-over-month following a 0.2% gain in February. Core PP for the 12 months that ended in March increased 3.4%.

U.S. Producer Price Index Year-over-Year

source: tradingeconomics.com

The Bureau of Labor Statistics released its monthly Consumer Price Index summary on April 10, which showed a similar decline in March. The month’s all-items index decreased 0.1%, following a 0.2% increase in February and a 0.5% gain in January.

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The CPI all-items index increased 2.4% for the 12 months that ended in March.