Wholesale prices dropped in March. The producer price index (PPI), which measures pipeline costs for raw, intermediate and finished goods, declined at 0.4% in March from February levels.
The decline was the PPI’s first since October 2023.
Year-over-year, PPI rose 2.7%. The core PPI, which excludes food, energy and trade services, rose 3.4% year-over-year.
Through the supply chain, goods prices were tame in March. Three of the four supply-chain stages were flat or lower from the previous month’s report.
Stage 4 goods inputs, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, were flat in March after a 0.3% increase in February. Overall, Stage 4 intermediate demand rose 2.3% in March.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, fell 2.2% in March after a revised 1.8% increase in February. The decline was the first for Stage 3 goods since October. Overall, year-over-year Stage 3 demand rose 1.4% in March.
Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, declined 1.2% in March after a revised 1.4% dip in February. Overall, Stage 2 intermediate demand rose 2.7% in March.
Finally, goods inputs for Stage 1 demand rose 0.1% in March after a 0.6% rise in February. Overall, Stage 1 intermediate demand rose 1.4% in March, the largest increase since July 2024.
