Reversing trends from the previous month, wholesale prices decreased in all four supply-chain stages in March.
Overall, the producer price index (PPI), which measures pipeline costs for raw, intermediate and finished goods, increased less than expected in March. The PPI rose 0.2% for the month, less than analysts’ consensus estimate of a 0.3% increase and down from February’s 0.6% increase, the Labor Department’s Bureau of Labor Statistics reported.
On a year-over-year basis, PPI rose 2.1%, the biggest gain since April 2023.
Supply-chain increases registered in services inputs but goods inputs eased in March.
Stage 4 goods inputs, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, declined 0.2% in March after a 0.6% increase in February. Overall, Stage 4 intermediate demand rose 2.1% in March.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, fell 0.1% after a revised 2.6% increase in February. Overall, year-over-year Stage 3 demand fell 0.4% year-over-year. March marked the 13th consecutive month of year-over-year price decreases.
Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, fell 3.1% in March after a revised 0.9% decrease in February. February’s initial report signaled a 1.1% increase from January price levels. Overall, Stage 2 intermediate demand dropped 0.4% year-over-year.
Finally, goods inputs for Stage 1 demand fell 0.7% after a 1.4% rise in March. Overall, Stage 1 intermediate demand rose 0.2% in March, the first annual increase since March 2023.
