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Wholesale Prices Take Surprise Dip in March; Overall and Core Measures Fall
The Producer Price Index (PPI) took an unexpected dip in March, dropping 0.4%, according to the Bureau of Labor Statistics. Analysts had anticipated a 0.2% increase. It follows a revised 0.1% rise in February, which was initially reported as unchanged. On a yearly basis, the PPI climbed by 2.7%, falling short of the expected 3.3% and easing from February’s 3.2%.
That is the lowest month-over-month print since COVID lockdowns and lowest year-over-year since September 2024 as energy and services costs fell.
Stripping out volatile food and energy costs, core PPI also slipped, declining by 0.1% from February. This missed the forecast of a 0.3% gain and came after a revised 0.1% increase in February (originally reported as a 0.1% drop). Looking year-over-year, the core PPI slowed to 3.3%, down from February’s revised 3.5% (previously 3.4%) and below the expected 3.6%.
This unexpected decline in producer price is welcome news that shows some disinflation is in the pipeline and there will be more with the recent drops in oil and commodity prices.
- ◦Economy
