US producer prices increased by 0.5% month-over-month in March 2026, matching the previous period’s growth and falling short of market expectations of 1.1%. Goods prices surged 1.6%, the largest increase since August 2023, fueled by an 8.5% jump in energy costs, largely attributed to the ongoing Iran conflict. Meanwhile, final demand food prices declined by 0.3%. On the services side, prices remained unchanged after a 0.3% increase in February. Within this category, a 1.3% rise in transportation and warehousing costs, along with a 0.1% uptick in other final demand services, offset a 0.3% decline in trade service margins. Year-over-year, producer prices rose 4%, the largest increase since February 2023 but still below the expected 4.6%. The core index, excluding food, energy, and trade services, edged up 0.2% month-over-month, slower than the 0.5% gains seen in both January and February, and climbed 3.6% year-over-year.