PPI Plunge: U.S. Producer Prices Drop Sharply in March

The U.S. March 2025 Producer Price Index (PPI) fell by 0.4% from the previous month on a seasonally adjusted basis primarily due to the fall in final demand goods prices by 0.9%. Energy prices led the decline most with a fall of 4.0%, as gasoline price fell by 11.1%.

Final demand food prices declined by 2.1%, and prices of goods less foods and energy rose by 0.3%. The final demand services index declined by 0.2%, led predominantly by a decrease of 0.7% in margins of trade services, although legal services rose by 1.5%.

During the last 12 months ended March, the most current demand index increased 2.7% unadjusted. This decline in price of producer inflation, driven by across-the-board losses in prices of gasoline, diesel fuel, foods and commodities and transported and traded services, could have some effect on Federal Reserve money policy and could indicate weaker demand or supply interruptions