Wholesale inflation measured by a Producer Price Index report Thursday rose 0.2% for March – less than Dow Jones economists expected. Services drove the increase. Goods prices overall were down 0.1%, but poultry wholesale prices jumped 10.7%. File photo by Michael Reynolds/EPA-EFE
April 11 (UPI) — Wholesale inflation rose less than expected in March, according to a Thursday report from the Bureau of Labor Statistics.
Producer Price Index March inflation rose 0.2% from the previous month for a 2.1% increase over the past 12 months.
Dow Jones economists had forecast that wholesale prices would rise 0.3% and the PPI 0.6% in February and 0.4% in January.
“The March increase in the index for final demand is attributable to a 0.3% rise in prices for final demand services,” the BLS said in a statement. “In contrast, the index for final demand goods edged down 0.1%. The index for final demand less foods, energy, and trade services moved up 0.2% in March after rising 0.3% in February.”
The PPI final demand prices for gasoline fell 3.6%.
The goods price decrease compares with a February goods price PPI increase of 1.2%.
“A major factor in the March decline in prices for processed goods for intermediate demand was the index for natural gas to electric utilities, which decreased 6.4%. Prices for ethanol, cold rolled steel sheet and strip, gasoline, commercial electric power, and prepared animal feeds also fell,” BLS said.
Poultry wholesale prices jumped 10.7%.
“Leading the March decrease in prices for unprocessed goods for intermediate demand, the index for natural gas dropped 37%,” the BLS PPI report said. “Prices for carbon steel scrap, slaughter chickens, crude petroleum, fresh fruits and melons, and ungraded chicken eggs also fell. Conversely, the index for livestock increased 5.4%.”
This wholesale PPI inflation report contrasts with Wednesday’s Consumer Price Index that came in higher than expected for March at 0.4%. On a 12-month basis CPI inflation was up 3.5% in March before seasonal adjustment.