Annual wholesale inflation rises 11.2 percent in March

Washington DC: Wholesale prices surged again in March as strong consumer demand, pandemic-related supply chain snarls, and the Russian war in Ukraine continued to fuel the highest inflation in decades.

The Labor Department said Wednesday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, surged 11.2% in March from the year-ago period. On a monthly basis, prices grew by 1.4% – an uptick from February, when the gauge increased by 0.9%.

Core inflation at the wholesale level, which excludes the more volatile measurements of food and energy, increased 0.9% for the month, following a 0.2% increase in February. Over the past 12 months, core prices were up 7.0%.

Diesel fuel prices, which soared 20.4% in the month, led to cost increases in March. Over half of the broad-based increase in March can be traced to a 5.7% jump in prices for energy costs, the Labor Department said.

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