The US producer price index (PPI) rose year-on-year (YoY) in March to its highest level since February 2023, driven by the commodities sector and higher transportation and storage costs, according to data from the Bureau of Labor Statistics.
The energy sector accounted for the largest share of the hike, with prices jumping 8.5% month-on-month (MoM) in March. Gasoline prices surged 15.7%, while diesel, jet fuel, and heating oil also saw price hikes.
In contrast, stable service prices limited the overall index’s rise, suggesting that the data reflects the impact of the Middle East conflict. Inflationary pressures are expected to increase in the coming period as energy prices continue to rise.
PPI Changes (March 2026)
PPI
Estimates
Previous
Current
Change
Core (Annual)
—
%3.5
%3.6
+0.1%
Core (Monthly)
%0.4
%0.5
%0.2
(%0.3)
Headline (Annual)
—
%3.4
%4.0
+0.6%
Headline (Monthly)
%1.1
%0.5
%0.5
—
Interpretation? The data reflects the continued impact of energy price volatility on the inflation trajectory, amid the ongoing war in the Middle East, as rising oil prices have increased fuel costs and production inputs, putting pressure on businesses and consumers.
The US producer price index (PPI) rose year-on-year (YoY) in March to its highest level since February 2023, driven by the commodities sector and higher transportation and storage costs, according to data from the Bureau of Labor Statistics.
The energy sector accounted for the largest share of the hike, with prices jumping 8.5% month-on-month (MoM) in March. Gasoline prices surged 15.7%, while diesel, jet fuel, and heating oil also saw price hikes.
In contrast, stable service prices limited the overall index’s rise, suggesting that the data reflects the impact of the Middle East conflict. Inflationary pressures are expected to increase in the coming period as energy prices continue to rise.
PPI Changes (March 2026)
PPI
Estimates
Previous
Current
Change
Core (Annual)
—
%3.5
%3.6
+0.1%
Core (Monthly)
%0.4
%0.5
%0.2
(%0.3)
Headline (Annual)
—
%3.4
%4.0
+0.6%
Headline (Monthly)
%1.1
%0.5
%0.5
—
Interpretation? The data reflects the continued impact of energy price volatility on the inflation trajectory, amid the ongoing war in the Middle East, as rising oil prices have increased fuel costs and production inputs, putting pressure on businesses and consumers.
