US producer inflation significantly eases to 2.7% in March

ISTANBUL

US annual producer inflation significantly eased to 2.7% in March, according to Labor Department data released Thursday.

The figure marks a sharp slowing from February's annual gain of 4.9%, which was revised up from 4.6% increase.

It is also a significant retreat from the record annual jump of 11.7% in March last year.

The producer price index (PPI), which measures changes in the price of goods and services from a producer perspective, was lower than market estimates of 3% increase.

On a monthly basis, the PPI fell 0.5% in March, also coming lower than expectations of a 0.1% gain. The February figure was a decline of 0.1%.

"In March, two-thirds of the decline in the index for final demand can be attributed to a 1.0- percent decrease in prices for final demand goods," the Labor Department said in a statement.

Core producer prices, which exclude food, energy and trade, moved up 0.1% in March after rising 0.2% in February.

Core PPI in March climbed 3.6% on an annual basis, following a 4.5% rise in February.