Producer prices rise by slightly less than anticipated in March

11th Apr 2024 13:52

(Sharecast News) - Wholesale prices rose by a tad less than anticipated last month amid a decline in energy costs.

According to the U.S. Department of Labor, in seasonally adjusted terms so-called total final demand prices were up in March by 0.2% month-on-month (consensus: 0.3%).

Food prices rose by 0.8% versus February, but those for energy served as a partial offset, declining by 1.6%.

In year-on-year terms producer prices were ahead by 2.1%, following an increase of 1.6% during the previous month.

Goods prices dipped by 0.1% on the month and services' were ahead by 0.3% with trade prices rising by 0.3%, and those for transportation and warehousing by 0.8%.

"After another sizzling CPI report, producer prices offer some relief for Fed officials who may view the recent price reports as too hot to consider rate cuts in the immediate future," said Matthew Martin, US economist at Oxford Economics.

"While we see the odds of the first rate cut occurring in September rising, cooler reports such as the PPI report keep the June meeting on the table, which is our current baseline."

-- More to follow --