April 22, 2022
The seasonally adjusted Producer Price Index for final demand gained 1.4% in March 2022, according to the US Bureau of Labor Statistics. Following gains of 0.9% in February and 1.2% in January 2022. Final demand prices increased 11.2% for the 12 months ended March 2022 on an unadjusted basis, the largest increase since 12-month data were first calculated in November 2010.
The increase in the final demand index in March can be attributed to a 2.3% increase in final demand goods prices. Notably, “Over half of the broad-based advance in March can be traced to a 5.7% jump in prices for final demand energy. The indexes for final demand goods less foods and energy and for final demand foods also moved higher, 1.1% and 2.4%, respectively.” according to the U.S Bureau.
Following a 0.3% increase in February 2022, prices for final demand services increased 0.9% in March 2022. Notably, “Over 40% of the March advance can be traced to a 1.2% rise in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.)” There was a 5.5% increase for final demand transportation and warehousing services. Prices for final demand services excluding trade, transportation, and warehousing increased by 0.3%.
The final demand foods index rose 2.4% (February 2.1%) and for energy rose 5.7% (February 7.5%). Prices for final demand products, excluding food, energy and trade services increased by 0.9% in March, the largest advance since rising 1.0% in January 2021. For the 12 months ended in March, the index for final demand less foods, energy, and trade services increased 7.0%.
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