The producer price index slumped 0.6% in March on a seasonally adjusted basis, while the core rate, which excludes food and energy rose 0.2%, the Labor Department reported Friday.
In February, PPI rose an unrevised 0.7% while the core rate also gained an unrevised 0.2%.
Food prices soared 0.8% in March, while energy prices slumped 3.4%. Intermediate goods slid 0.9%, while crude goods dropped 2.5%.
Economists polled by Thomson Reuters expected a 0.1% dip in the headline number and a 0.2% core increase.