Wholesale inflation edges up
U.S. producer prices rose in March but less than some forecasts; nevertheless wholesale inflation is running at about a 4% annual rate, the highest in three years, with faster oil prices cited as a driver. Economists say that keeps pressure on near‑term rate‑cut expectations because energy‑linked pipeline pressures can sustain inflation. (reuters.com, edition.cnn.com)
U.S. wholesale prices rose again in March, pushing producer inflation to its hottest annual pace in three years. (bls.gov) The Producer Price Index for final demand increased 0.5% in March after 0.5% in February and 0.6% in January, the Bureau of Labor Statistics said on Tuesday, April 14. Over the 12 months through March, the index climbed 4.0%, the biggest annual increase since February 2023. (bls.gov) Goods prices did most of the lifting. Final-demand goods jumped 1.6% in March, energy surged 8.5%, gasoline rose 15.7%, diesel fuel climbed 42.0%, and crude petroleum increased 20.2%. (bls.gov) Services did not add much in March. Final-demand services were unchanged, even as transportation and warehousing rose 1.3% and airline passenger services increased 2.8%. (bls.gov) The producer price index tracks what businesses receive for their goods and services before those costs fully show up on store shelves. March consumer inflation already accelerated to 3.3% from a year earlier, with the Bureau of Labor Statistics reporting a 0.9% monthly increase. (bls.gov, (bls.gov)) The Federal Reserve has held its benchmark rate at 3.5% to 3.75% since its March 18 meeting and said inflation “remains somewhat elevated.” The central bank also said uncertainty around Middle East developments and their effects on the U.S. economy was uncertain. (federalreserve.gov) Reuters reported that March producer prices rose less than economists expected, but economists still said higher energy costs were likely to keep the Federal Reserve from cutting rates soon. Reuters said the pressure came as oil prices climbed during the conflict tied to Iran. (reuters.com) CNN reported that fast-rising oil prices were a main driver of the March increase and described the 4.0% annual producer inflation rate as the highest in three years. CNN said the report added to evidence that energy costs were feeding through the inflation pipeline. (cnn.com) The next producer price report, for April 2026, is scheduled for release on Wednesday, May 13, at 8:30 a.m. Eastern time. For now, March showed that energy costs are still moving quickly through the wholesale side of the economy. (bls.gov)
