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Producer Prices Remain Cool

Sam RoApr 12, 2013, 18:00 IST

Flickr / dfbphotosThe March reading of producer prices is out.

The headline price index fell by 0.6% largely due to falling gas prices.

However, this drop was much more dramatic than the 0.2% decline expected.

Excluding food and energy, prices rose 0.2%, which was right in line with expectations.

Year-over-year, producer prices climbed by just 1.1%.

This is good news for those hoping for prolonged easy monetary policy. Last year, the Federal reserve said it would use an inflation rate threshold of 2.5% to guide monetary policy.