Producer Prices Spike, but Core Prices Tame

Washington, DC, April 15, 2008-- U.S. producer prices rose 1.1 percent in March, the Labor Department reported Tuesday.

However, core producer prices, excluding volatile food and energy, rose 0.2 percent.

This compares to the February headline PPI rate of 0.3 percent, and a core rate of 0.5 percent.

According to the department, energy prices rose 2.9 percent at the wholesale level in March. Diesel fuel prices jumped 15.3 percent -- the largest change since November. Gasoline prices rose 1.3 percent.

Prices for intermediate goods rose 2.3 percent in March, as energy goods gained 5.9 percent and foods and feeds rose 2.9 percent. Excluding food and energy, prices for intermediate goods gained 1.1 percent -- the largest change since May 2006.

Prices for crude goods climbed 8.0 percent and crude energy materials rose 13.4 percent, largest changes since February of last year.