US producer prices increase less than expected in March

U.S. producer prices rose less than expected in March, with services costs unchanged, but surging energy prices tied to the war with Iran are adding fresh inflation pressure. The report is modestly disinflationary on the headline PPI print, but the energy shock and geopolitical backdrop keep inflation risks elevated.

Analysis

U.S. producer prices rose less than expected in March, with services costs unchanged, but surging energy prices tied to the war with Iran are adding fresh inflation pressure. The report is modestly disinflationary on the headline PPI print, but the energy shock and geopolitical backdrop keep inflation risks elevated.