By Tuba Ongun
The US Producer Price Index (PPI) dropped 0.4% month-on-month in March, marking its first decline since October 2023, according to Labor Department Bureau of Labor Statistics data released Friday.
The figure reversed a 0.1% rise in February, defying market forecasts of a 0.2% rise.
Prices for final demand goods fell 0.9% monthly in March, the largest decline since October 2023 due to a 4% drop in energy costs.
This was mainly led by a 0.7% monthly hike in the cost of goods, the largest increase since February.
Core PPI, which excludes volatile food and energy prices, fell 0.1% month-on-month in March, bucking a forecast of a 0.3% rise.
On an annual basis, PPI increased at the slowest pace in six months in March by 2.7%.