Producer prices fell 0.1% in March, seasonally adjusted, after falling 0.2% in February, according to the U.S. Bureau of Labor Statistics. March’s decrease was attributable to lower prices for final demand services.
Prices for final demand services fell 0.2%, marking the first decline since October 2015. Eighty percent of the decline in final demand services could be traced to a 0.5% decrease in margins for final demand trade. The index for final demand transportation and warehousing services also fell, dropping 0.3%.
The index for final demand goods moved up 0.2%, following eight consecutive declines. Most of the increase could be traced to prices for final demand energy, which rose as gasoline prices increased by 7.1%. The index for final demand goods less foods and energy moved up 0.1%, while final demand foods fell 0.9%.
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