**Wholesale Prices Take Surprise Dip in March; Overall and Core Measures Fall**
The Producer Price Index (PPI) fell unexpectedly in March, declining by 0.4%, according to data released by the Bureau of Labor Statistics. Market analysts had forecasted a 0.2% increase. The March drop follows a revised 0.1% gain in February, originally reported as flat.
On a year-over-year basis, the PPI rose by 2.7%, falling short of the anticipated 3.3% and down from February’s 3.2%. This marks the lowest monthly decline since the early months of the COVID-19 pandemic and the slowest annual increase since September 2024, as both energy and services prices softened.
The core PPI, which excludes the often-volatile food and energy components, also registered a decline—falling 0.1% from February. Analysts had expected a 0.3% increase. February’s core figure was revised to a 0.1% rise after initially being reported as a 0.1% decrease. Year-over-year, the core rate eased to 3.3%, down from a revised 3.5% in February and below expectations of 3.6%.
This unexpected decline in wholesale prices signals some early signs of disinflation in the economic pipeline, which may be reinforced in the coming months by recent declines in oil and other commodity prices.
