**MNI 5 Things: March PPI Above-Expected +0.3%, Core +0.3%>

--5 Things We Learned From The March PPI Data

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

Producer Price Index data for March released by the Labor Department 

Tuesday: 

     - The March PPI data were strong, with a 0.3% gain for the overall 

figure, well ahead of the 0.1% gain expected. The ex. food and energy 

reading was also ahead of expectations with a 0.3% rise and a 0.4% rise 

for PPI ex. trade services, food, and energy continued the string of 

solid readings for that series. 

     - The personal consumption price measure in the data, which some 

analysts use as a preview measure for the PCE price index, rose only 

0.1% and was also up 0.1% ex. food and energy. However, outside of food, 

energy and trade services, the PCE measure rose 0.3%, suggesting 

underlying consumer inflation had some upward momentum in the month. 

     - Energy prices posted another decline, falling 2.1% in March 

after a 0.5% decline in February. This partially offset a shockingly 

large 2.2% rise in food prices that resulted from a 31.5% jump in 

vegetable prices, a 41.6% rise in chicken egg prices, and a 62.5% rise 

in the price of unprocessed finfish. Even meat played a part, with 

prices rising 2.3%. The volatile trade services component was up 0.2% 

after a 0.2% February decrease. 

     - Within the core, there were notable gains for the prices of cable 

services, hospital care, and motor vehicles, but wireless communications 

services prices fell 1.4%, echoing the price decline seen in the CPI 

report a year ago. 

     - Year/year prices show some further pricing pressures from 

February. Overall PPI is now up 3.0% y/y vs 2.8% in February, while ex 

food and energy PPI moved up to 2.7% y/y vs 2.5% in February and PPI ex 

food, energy and trade services are now up 2.9% y/y vs 2.7% in February. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]