March 2025 Producer Price Index

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The Producer Price Index for final demand decreased 0.4 percent in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.1 percent in February and 0.6 percent in January. (See table A.) On an unadjusted basis, the index for final demand advanced 2.7 percent for the 12 months ended in March.

In March, over 70 percent of the decrease in the index for final demand can be traced to prices for final demand goods, which fell 0.9 percent. The index for final demand services declined 0.2 percent.

Prices for final demand less foods, energy, and trade services edged up 0.1 percent in March after increasing 0.4 percent in each of the previous 3 months. For the 12 months ended in March, the index for final demand less foods, energy, and trade services advanced 3.4 percent.

Final Demand

Final demand goods: Prices for final demand goods moved down 0.9 percent in March, the largest decrease since falling 1.4 percent in October 2023. Over three-fourths of the March decline is attributable to a 4.0-percent drop in the index for final demand energy. Prices for final demand foods decreased 2.1 percent. In contrast, the index for final demand goods less foods and energy rose 0.3 percent.

Product detail: Two-thirds of the March decline in the index for final demand goods can be traced to an 11.1-percent drop in prices for gasoline. The indexes for chicken eggs, beef and veal, fresh and dry vegetables, diesel fuel, and jet fuel also moved lower. Conversely, prices for steel mill products increased 7.1 percent. The indexes for residential electric power and for processed young chickens also advanced. (See table 2.)

Final demand services: Prices for final demand services fell 0.2 percent in March, the largest decline since moving down 0.2 percent in July 2024. Leading the March decrease, margins for final demand trade services dropped 0.7 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services moved down 0.6 percent. In contrast, the index for final demand services less trade, transportation, and warehousing increased 0.1 percent.

Product detail: A 1.3-percent decrease in the index for machinery and vehicle wholesaling was a major factor in the March decline in prices for final demand services. The indexes for airline passenger services; food retailing; apparel, jewelry, footwear, and accessories retailing; automobiles retailing (partial); and guestroom rental also moved lower. Conversely, prices for legal services rose 1.5 percent. The indexes for chemicals and allied products wholesaling and for long-distance motor carrying also advanced.

Intermediate Demand by Commodity Type

Within intermediate demand in March, the index for processed goods was unchanged, prices for unprocessed goods fell 4.1 percent, and the index for services declined 0.1 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand were unchanged in March following a 0.4-percent increase in February. In March, a 0.9-percent rise in the index for processed materials less foods and energy offset price decreases for processed energy goods and for processed foods and feeds, which fell 3.2 percent and 0.5 percent, respectively. For the 12 months ended in March, the index for processed goods for intermediate demand advanced 0.9 percent.

Product detail: Among prices for processed goods for intermediate demand in March, the index for steel mill products rose 7.1 percent. Prices for structural, architectural, and pre-engineered metal products; primary basic organic chemicals; industrial electric power; and plastic resins and materials also moved higher. In contrast, the index for gasoline fell 11.1 percent. Prices for diesel fuel, jet fuel, beef and veal, and unitary air-conditioners (except heat pumps) also declined.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand moved down 4.1 percent in March, the largest decrease since falling 5.1 percent in May 2023. Nearly three-fourths of the March decline is attributable to prices for unprocessed foodstuffs and feedstuffs, which dropped 7.5 percent. The index for unprocessed energy materials decreased 3.3 percent. Conversely, prices for unprocessed nonfood materials less energy advanced 0.4 percent. For the 12 months ended in March, the index for unprocessed goods for intermediate demand rose 7.1 percent.

Product detail: In March, a 36.2-percent drop in prices for ungraded chicken eggs was a major factor in the decline in the index for unprocessed goods for intermediate demand. Prices for crude petroleum; raw milk; strawberries; hay, hayseeds, and oilseeds; and slaughter barrows and gilts also moved lower. In contrast, the index for nonferrous metals increased 2.6 percent. Prices for natural gas and for slaughter steers and heifers also advanced.

Services for intermediate demand: The index for services for intermediate demand edged down 0.1 percent in March after rising 0.2 percent in February. Leading the decline, prices for services less trade, transportation, and warehousing for intermediate demand fell 0.2 percent. The index for transportation and warehousing services for intermediate demand inched down 0.1 percent. Conversely, margins for trade services for intermediate demand advanced 0.1 percent. For the 12 months ended in March, prices for services for intermediate demand rose 2.0 percent.

Product detail: A 2.3-percent decrease in the index for loan services (partial) was a major factor in the March decline in prices for services for intermediate demand. The indexes for gross rents for retail properties; airline passenger services; television advertising time sales; and building materials, paint, and hardware wholesaling also fell. In contrast, margins for metals, minerals, and ores wholesaling increased 5.2 percent. Prices for staffing services, legal services, and long-distance motor carrying also advanced.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand decreased 0.1 percent in March, the first decline since edging down 0.1 percent in May 2024. In March, prices for total services inputs to stage 4 intermediate demand fell 0.1 percent, while the index for total goods inputs was unchanged. (See table D.) Lower prices for gross rents for retail properties, gasoline, loan services (partial), strawberries, and commercial electric power outweighed increases in the indexes for structural, architectural, and pre-engineered metal products; steel mill products; metals, minerals, and ores wholesaling; and chemicals and allied products wholesaling. For the 12 months ended in March, prices for stage 4 intermediate demand rose 2.3 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand moved down 1.0 percent in March, the largest decrease since falling 1.3 percent in May 2023. In March, prices for total goods inputs to stage 3 intermediate demand declined 2.2 percent, while the index for total services inputs was unchanged. Lower prices for raw milk, ungraded chicken eggs, diesel fuel, jet fuel, television advertising time sales, and gasoline outweighed advances in the indexes for steel mill products; staffing services; and metals, minerals, and ores wholesaling. For the 12 months ended in March, prices for stage 3 intermediate demand increased 1.4 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand declined 0.5 percent in March following a 0.7-percent decrease in February. In March, prices for total goods inputs to stage 2 intermediate demand fell 1.2 percent, and the index for total services inputs edged down 0.1 percent. Lower prices for crude petroleum, loan services (partial), prepared animal feeds, deposit services, (partial), oilseeds, and coal outweighed advances in the indexes for gas fuels, legal services, and staffing services. For the 12 months ended in March, prices for stage 2 intermediate demand increased 2.7 percent.

Stage 1 intermediate demand: The index for stage 1 intermediate demand fell 0.1 percent in March, the first decrease since edging down 0.1 percent in November 2024. In March, prices for total services inputs to stage 1 intermediate demand declined 0.3 percent. Conversely, the index for total goods inputs rose 0.1 percent. Lower prices for gross rents for retail properties, diesel fuel, gasoline, airline passenger services, and data processing and related services outweighed increases in the indexes for steel mill products; metals, minerals, and ores wholesaling; structural, architectural, and pre-engineered metal products; and chemicals and allied products wholesaling. For the 12 months ended in March, prices for stage 1 intermediate demand moved up 1.4 percent, the largest 12-month advance since rising 1.7 percent in July 2024.