Investing.com - U.S. producer prices rose more than expected in March, but a slowdown in the annualized figures for the core readings, which exclude more volatile food and energy costs, underlined why the Federal Reserve expects not to tighten policy in 2019.
The Labor Department said its producer price index (PPI) increased 0.3% last month, while the core PPI, which excludes food and energy costs, rose 0.6%.
In the 12 months through February, overall factory prices increased 2.2% while core prices rose 2.4%.
The Fed watches these data because producers often pass higher costs on to consumers, putting upward pressure on inflation.
However, the annualized reading for core PPI slowed from February’s reading of 2.5%, mirroring a similar move seen in consumer prices in data released on Wednesday.