April 13 (UPI) — Sparked by rises in food and energy costs, the producer price index increased to a seasonally adjusted 1.4% in March and unadjusted 11.2% over the past 12 months, both the largest increases since the index was calculated in 2010. While the Russian invasion of Ukraine may get some of the blame, the index, which measures the average change over time in the selling prices received by domestic producers for their output, has been on the rise since last year.
According to the Labor Department report, energy costs leaped 5.7%, while food costs increased 2.4%. Without food and energy indexes, the producer price index increased 0.9%.
“In March, the rise in the index for final demand was led by a 2.3% advance in prices for final demand goods,” the report said. “The index for final demand services increased 0.9%. For the 12 months ended in March, the index for final demand less foods, energy, and trade services increased 7%.
Among final demand goods costs, diesel fuel prices increased 20.4%, followed by jumps in gasoline, fresh and dry vegetables, jet fuel, iron and steel scrap and electric power.
Prices for final demand transportation and warehousing services increased 5.5%, and final demand services less trade, transportation, and warehousing bumped up 0.3%.
“A 22.7% jump in margins for fuels and lubricants retailing was a major factor in the March advance in prices for final demand services,” the report said. “The indexes for truck transportation of freight; traveler accommodation services; airline passenger services; inpatient care; and hardware, building materials, and supplies retailing also increased.”
