Wholesale prices still elevated

U.S. wholesale prices kept climbing in March, with producer inflation hitting 4.0 percent from a year earlier, the fastest annual pace since February 2023. (bls.gov) The Producer Price Index for final demand rose 0.5 percent in March after gains of 0.5 percent in February and 0.6 percent in January, according to the Bureau of Labor Statistics report released on April 14, 2026. Economists surveyed by Reuters had expected a 0.6 percent monthly increase. (bls.gov) (reuters.com) Goods drove the March increase. Prices for final demand goods jumped 1.6 percent, while final demand services were unchanged. (bls.gov) Energy was the biggest pressure point inside goods. The final demand energy index rose 4.0 percent in March, with gasoline prices up 11.1 percent, and the Bureau of Labor Statistics said more than 70 percent of the increase in goods prices came from energy. (bls.gov) The producer price index tracks what businesses receive for their goods and services before those costs fully show up on store shelves. It matters because businesses often try to pass higher fuel, shipping, and materials costs on to consumers later. (bls.gov) (federalreserve.gov) A separate “core” measure looked cooler in March. The index excluding foods, energy, and trade services rose 0.2 percent on the month, down from 0.5 percent increases in both January and February, though it was still up 3.6 percent from a year earlier. (bls.gov) Federal Reserve officials had already signaled caution on rate cuts before this report. In his March 18 press conference, Chair Jerome Powell said recent inflation readings had been lifted by tariffs and by higher oil prices tied to Middle East supply disruptions. (federalreserve.gov) The March report showed that split in real time: trade-service margins fell 0.3 percent, transportation and warehousing services rose 1.3 percent, and food prices increased 2.1 percent. Those moves left wholesale inflation slower than some forecasts for the month but still elevated on an annual basis. (bls.gov) The next test is whether March’s jump in energy costs fades or feeds through to broader prices in April. The Bureau of Labor Statistics has scheduled the April 2026 producer price report for May 13, 2026. (bls.gov)