The Producer Price Index for final demand rose 0.2 percent in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.6 percent in February and 0.4 percent in January. (See table A.) On an unadjusted basis, the index for final demand increased 2.1 percent for the 12 months ended in March, the largest advance since rising 2.3 percent for the 12 months ended April 2023.
The March increase in the index for final demand is attributable to a 0.3-percent rise in prices for final demand services. In contrast, the index for final demand goods edged down 0.1 percent.
The index for final demand less foods, energy, and trade services moved up 0.2 percent in March after rising 0.3 percent in February. For the 12 months ended in March, prices for final demand less foods, energy, and trade services increased 2.8 percent.
Final Demand
Final demand services: The index for final demand services moved up 0.3 percent in March, the third consecutive rise. Leading the broad-based March increase, prices for final demand services less trade, transportation, and warehousing advanced 0.2 percent. The indexes for final demand trade services and for final demand transportation and warehousing services moved up 0.3 percent and 0.8 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: A major factor in the March increase in prices for final demand services was the index for securities brokerage, dealing, investment advice, and related services, which rose 3.1 percent. The indexes for professional and commercial equipment wholesaling; airline passenger services; investment banking; deposit services (partial); and computer hardware, software, and supplies retailing also moved higher. Conversely, prices for traveler accommodation services decreased 3.8 percent. The indexes for automobiles retailing (partial) and for machinery and equipment parts and supplies wholesaling also fell.
Final demand goods: Prices for final demand goods decreased 0.1 percent in March after rising 1.2 percent in February. The decline is attributable to the index for final demand energy, which moved down 1.6 percent. In contrast, prices for final demand foods and for final demand goods less foods and energy advanced 0.8 percent and 0.1 percent, respectively.
Product detail: Leading the March decline in the index for final demand goods, prices for gasoline decreased 3.6 percent. The indexes for chicken eggs, carbon steel scrap, jet fuel, and fresh fruits and melons also fell. Conversely, prices for processed poultry jumped 10.7 percent. The indexes for fresh and dry vegetables, residential electric power, and motor vehicles also moved higher.
Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month |
Total final demand |
Final demand less foods, energy, and trade |
Final demand goods |
Final demand services |
Change in final demand from 12 months ago (unadj.) |
Change in final demand less foods, energy, and trade from 12 mo. ago (unadj.) |
Total |
Foods |
Energy |
Less foods and energy |
Total |
Trade |
Transportation and warehousing |
Other |
2023 |
|
Mar. |
-0.4 |
0.1 |
-0.8 |
0.3 |
-4.6 |
0.2 |
-0.2 |
-0.7 |
-0.7 |
0.1 |
2.7 |
3.7 |
Apr. |
0.2 |
0.2 |
-0.1 |
-0.7 |
-0.1 |
0.1 |
0.3 |
0.5 |
-2.2 |
0.5 |
2.3 |
3.4 |
May |
-0.2 |
0.0 |
-1.2 |
-0.8 |
-5.4 |
0.1 |
0.2 |
0.7 |
-0.7 |
0.1 |
1.1 |
2.9 |
June |
0.0 |
0.2 |
-0.1 |
-0.4 |
0.4 |
-0.1 |
0.0 |
-0.8 |
-0.3 |
0.5 |
0.3 |
2.9 |
July |
0.6 |
0.2 |
0.2 |
0.3 |
0.8 |
0.0 |
0.8 |
1.7 |
0.2 |
0.4 |
1.1 |
2.9 |
Aug. |
0.6 |
0.2 |
1.7 |
-0.4 |
8.9 |
0.1 |
0.2 |
-0.1 |
0.0 |
0.3 |
1.9 |
2.9 |
Sept. |
0.2 |
0.3 |
0.9 |
0.4 |
3.2 |
0.3 |
-0.1 |
-1.1 |
0.4 |
0.3 |
1.8 |
2.9 |
Oct. |
-0.3 |
0.1 |
-1.2 |
0.2 |
-6.4 |
0.1 |
0.1 |
0.0 |
0.5 |
0.1 |
1.1 |
2.8 |
Nov. |
0.1 |
0.1 |
-0.2 |
0.7 |
-2.0 |
0.1 |
0.2 |
0.4 |
-0.2 |
0.1 |
0.8 |
2.5 |
Dec. |
-0.1 |
0.3 |
-0.1 |
0.0 |
-0.8 |
0.1 |
-0.1 |
-1.1 |
-0.1 |
0.4 |
1.1 |
2.7 |
2024 |
|
Jan. |
0.4 |
0.6 |
-0.1 |
-0.3 |
-1.2 |
0.3 |
0.6 |
0.2 |
-0.2 |
0.8 |
1.0 |
2.7 |
Feb. |
0.6 |
0.3 |
1.2 |
1.1 |
4.1 |
0.3 |
0.3 |
0.1 |
1.1 |
0.3 |
1.6 |
2.7 |
Mar. |
0.2 |
0.2 |
-0.1 |
0.8 |
-1.6 |
0.1 |
0.3 |
0.3 |
0.8 |
0.2 |
2.1 |
2.8 |