WASHINGTON — The March producer price index data were above expectations, raising the year/year headline rate slightly.
Overall PPI rose by 0.6%, compared with a 0.3% gain expected in both the MNI and Bloomberg surveys, while core prices rose 0.3%, above the 0.2% gain expected.
March PPI was up 0.6% (+0.597% unrounded) month/month overall on a sharp gain in energy prices and the larger than expected core reading, accompanied by a gain in food prices. Trade services prices also rose on the month.
Due to the increase for overall PPI, the year/year rate rose to +2.2% from +1.9% in February. At the same time, but the year/year rate for core prices fell to +2.4% from +2.5% in February. Also excluding trade prices, PPI was flat month/month and up 2.0% year/year, less than the 2.3% year/year gain in February.
Core PPI was +0.257% unrounded, on the low side of +0.3%, with the major components generally up.
Energy prices rose by 5.6% in March after a 1.8% gain in February, with gasoline prices rising 16.0%. AAA noted higher gasoline prices in mid-April than a month ago, so another gain in next month's data is possible. Electricity prices rose 0.6% and natural gas prices were up 1.4%. PPI excluding only energy posted a 0.3% gain, while food prices were up 0.3%.
The four-week moving average for claims fell by 7,000 to 207,000 in the April 6 week, the lowest since the December 6, 1969 week, and could fall in the following week. Continuing claims fell by 13,000 to 1.713 million in the March 30 week.
