WASHINGTON - Producer prices rose 0.7% in March, mostly because of a jump in prices for finished energy goods, the Labor Department reported Thursday.
Core prices that exclude food and energy goods rose 0.3%, the fourth monthly consecutive gain.
The gain in producer prices was lower than the 1.0% increase projected by economists and the increase in core prices was higher than the 0.2% estimated, according to the median estimate from Thomson Reuters.
The 0.7% gain in producer prices for March followed an unrevised 1.6% increase in February and was led by prices for finished energy goods, which were up 2.6%, the sixth consecutive monthly advance. The increase in the index for core prices also contributed to the gain. However, the index for finished consumer foods declined 0.2% for the month, the first decline since August 2010.
Roughly 80% of the 2.6% gain in prices for finished energy goods was attributed to the gasoline index, which climbed 5.7%. Also contributing to the gain were higher prices for liquefied petroleum gas and home heating oil.
The 0.2% March decrease for prices for finished consumer foods was led by a 21.4% drop in the index for fresh and dry vegetables, the department said.
