Producer Prices Fell in March 2023

By Tom Burnett CFA

On April 13, 2023, the Bureau of Labor Statistics released its March report on the Producer Price Index.  The PPI declined by 0.5% in March, after an unchanged reading for February.  The Index advanced 2.7% in the 12 months ending in March, the smallest increase since 2021.    By comparison, the 12-month increase for June 2022 was 11.2%.  In March, the Index for goods fell by 1.0% while the Index for services fell by 0.3%.  Gasoline prices fell by 11.7% in the month.

The Core Index, excluding food and energy, rose 0.1% in March, the smallest increase since 2021.  For the 12 months ending in March, the Core Index rose by 3.6%. Energy prices fell 6.4% in March while the Food Index rose by 0.6%.

The next PPI report will be issued on May 11, 2023.

Tom Burnett CFA is Director of Research