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Producer Price Index fell 0.2% in March, ex Fd & Engy down 0.2%
The Producer Price Index for final demand fell 0.2 percent in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.6 percent in February and increased 0.5 percent in January. (See table A.) On an unadjusted basis, the final demand index advanced 0.7 percent for the 12 months ended in March.
In March, the decrease in the final demand index can be traced to a 1.0-percent drop in prices for final demand goods. The index for final demand services moved up 0.2 percent.
Prices for final demand less foods, energy, and trade services declined 0.2 percent in March, the largest decrease since falling 0.2 percent in October 2015. For the 12 months ended in March, the index for final demand less foods, energy, and trade services rose 1.0 percent.
Final demand goods: The index for final demand goods fell 1.0 percent in March, the largest decline since moving down 1.1 percent in September 2015. The March decrease can be attributed to prices for final demand energy, which dropped 6.7 percent. In contrast, the index for final demand goods less foods and energy advanced 0.2 percent. Prices for final demand foods were unchanged.
Product detail: Eighty percent of the March decrease in the index for final demand goods can be traced to prices for gasoline, which dropped 16.8 percent. The indexes for diesel fuel, meats, jet fuel, liquefied petroleum gas, and industrial chemicals also moved lower. Conversely, prices for motor vehicles rose 0.8 percent. The indexes for chicken eggs and frozen specialty foods also increased.
Final demand services: The index for final demand services rose 0.2 percent in March after declining 0.3 percent in February. In March, the increase can be traced to margins for final demand trade services, which moved up 1.4 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, the index for final demand transportation and warehousing services decreased 3.3 percent. Prices for final demand services less trade, transportation, and warehousing were unchanged.
Product detail: Leading the March increase in the index for final demand services, margins for apparel, jewelry, footwear, and accessories retailing jumped 8.1 percent. The indexes for fuels and lubricants retailing; securities brokerage, dealing, and investment advice; loan services (partial); food retailing; and inpatient care also moved higher. Conversely, prices for airline passenger services decreased 10.0 percent. The indexes for deposit services (partial) and health, beauty, and optical goods retailing also declined.
Posted: April 9, 2020 Thursday 08:30 AM