The US monthly producer price index had their biggest gain in over 12 years in March amid strong demand for goods and services, the latest indicator of consistently rising inflation.
Supplier prices increased by 1.4 percent in March and 11.2 percent year over year, both of which are new records for data dating all the way back to 2010, the US Bureau of Labor Statistics reported Wednesday.
The release comes a day after the BLS announced that the consumer price index increased by 8.5 percent year over year in March, exceeding expectations and reaching its highest level since December 1981.
Prices for final demand goods led with a 2.3 percent monthly rise, while services prices gained 0.9 percent.
During the COVID pandemic, goods inflation outpaced services, but March’s data suggest that services are catching up as consumer demand swings. This reflects that inflation may not have peaked yet as many hoped.