US producer prices posted a surprise decline in March, with the headline PPI for final demand falling -0.4% mom, well below expectations of a 0.2% mom rise.
The drop was driven largely by a -0.9% mom decline in final demand goods, while final demand services also slipped -0.2% mom.
On an annual basis, PPI slowed to 2.7% year-on-year from 3.2%, also below forecasts.
PPI excludes food, energy, and trade services, rose just 0.1% mom on the month, with the year-on-year rate at 3.4%.
