March Producer Prices Help Clock Biggest Annual Gain in Nearly a Decade By Investing.com

By Dhirendra Tripathi

Investing.com – Producer prices in the U.S. rose more than anticipated in March, helping clock the largest gains on an annualized basis since September 2011.  

The producer price index for final demand rose 1% in March, following a 0.5% increase in February, according to numbers released by the Bureau of Labor Statistics.

The higher numbers are in line with expectations of higher inflation that a booming economy and a mountain of liquidity are likely to induce.

On an unadjusted basis, the final demand index moved up 4.2% for the 12 months ended March, the largest advance since rising 4.5% for the 12 months ended September 2011.

Economists surveyed by Reuters had forecast the PPI increasing 0.5% in March and jumping 3.8% year-on-year.

Prices for final demand goods rose 1.7% last month, the largest increase since the index began to be computed in December 2009. At 60% contribution, prices for final demand energy had the maximum share behind advance in March with their 5.9% jump.

Services prices were up 0.7%, advancing for the third consecutive month.