US PPI Rises Moderately in March Despite Continued Energy Surge
US wholesale prices rose 0.5% in March, lower than market expectations despite surging energy costs related to the Iran war. The producer price index (PPI) rose 0.5% after February's increase was revised down to 0.5%, according to Bureau of Labor Statistics data released Tuesday.
The core component, which excludes food and energy, showed more limited pressure. The core PPI rose 0.1%, indicating that price increases excluding energy remained relatively contained compared to the volatility in energy commodities.
This PPI release follows data last week showing US consumer prices surged in March due to a sharp increase in gasoline prices, while core consumer inflation came in below expectations. This figure reinforces the signal that the latest inflationary push is still primarily coming from energy, rather than from a broadening of price pressures.
However, risks remain. If the disruptions caused by the war to production and shipping continue, businesses could potentially face higher input costs for various industrial needs in the coming months, which could ultimately increase price pressures on consumers and influence interest rate policy expectations. (gn)
Source: Newsmaker.id
