Wholesale prices slowed to 0.5%; energy index jumped 8.5%

The producer price index for final demand goods and services rose by about half of what was expected in March despite concerns raised by the Iran war.

The U.S. Bureau of Labor Statistics reported Tuesday that wholesale prices increased by 0.5%, down from the 0.7% rate in February. Final demand goods drove the increase as final demand services were unchanged.

Final demand goods had their largest increase since August 2023, climbing 1.6% in March. An increase in the index for energy was the biggest contributor, rising 8.5%.

Without factoring in volatile food and energy, the index increased by 0.2%.

Process and unprocessed goods went in opposite directions. Processed goods for intermediate demand increased by 2.6% while unprocessed goods fell 2.6%. The increase for processed goods was the largest since May 2022, when the index rose 2.8%.

The bureau said more than half of the increase in the processed goods index can be attributed to a 42% increase in diesel fuel prices. Other intermediate fuels also increased, 

while natural gas and electric utilities decreased by 7.2%.

The Dow Jones consensus estimated a 1.1% increase in response to the Iran war.

On an annual basis, the producer price index for all items rose 4%. It is the biggest gain for a 12-month period since February 2023.

While final demand services did not see an index increase overall, airline passenger services increased by 2.8%.

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This story was originally published April 14, 2026 at 10:19 AM.