US producer prices rose 0.5% month-over-month in March 2026, matching February’s pace but coming in below market expectations of a 1.1% increase. Goods prices advanced 1.6%—the largest monthly gain since August 2023—driven by an 8.5% surge in energy costs, largely linked to the ongoing Iran conflict. In contrast, final demand food prices fell 0.3%.
On the services side, prices were flat after a 0.3% increase in February. Within this category, a 1.3% rise in transportation and warehousing costs and a 0.1% uptick in other final demand services offset a 0.3% decline in trade service margins.
On a yearly basis, the Producer Price Index increased 4%, the largest annual gain since February 2023 but still below the 4.6% expected by markets. The core index, which excludes food, energy, and trade services, rose 0.2% month-over-month—slower than the 0.5% increases recorded in both January and February—and was up 3.6% year-over-year.
