March PPI Flat; Core Beats Expectations

car manufacturing

Photo: J.D. Pooley/Getty Images

Headline: The Producer Price Index was flat for March, missing consensus expectations of a 0.3% rise, the Bureau of labour Statistics reported Thursday.Meanwhile, core inflation (ex food and energy) gained 0.3%, beating consensus 0.2% forecasts.

Energy prices declined a full per cent after rising 1.3% in February.

Prices for crude goods plummeted 2.5%, the greatest drop since May.

Analysis: PPI measures the average change in prices from the seller’s perspective. It acts as an indicator for commodity prices in the manufacturing sector which eventually trickle down to the consumer.

 

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