Producer prices in the U.S. unexpectedly saw a modest decrease in the month of March, according to a report released by the Labor Department on Wednesday.
The report said producer prices edged down by 0.1 percent in March after slipping by 0.2 percent in February. The drop surprised economists, who had expected prices to climb by 0.3 percent.
The unexpected decrease in producer prices came despite a rebound in energy prices, which surged up by 1.8 percent in March after tumbling by 3.4 percent in February.
Gasoline prices showed a substantial rebound, jumping by 7.1 percent in March after plunging by 15.1 percent in the previous month.
On the other hand, the report said food prices fell by 0.9 percent in March following a 0.3 percent drop in February. Prices for eggs for fresh used showed a particularly steep 27.4 percent decline.
Excluding food and energy prices, core producer prices still dipped by 0.1 percent in March after coming in unchanged in February. Core prices had been expected to rise by 0.2 percent.
The surprise drop in core prices reflected a decrease in prices for services, which edged down by 0.2 percent in March after coming in flat in the previous month.
The Labor Department said the drop in service prices largely reflected lower margins for machinery, equipment, parts, and supplies wholesaling, which slumped by 1.9 percent.
Compared to the same month a year ago, producer prices were down by 0.1 percent in March after coming in unchanged in February.
The annual rate of core producer price growth also slowed to 1.0 percent in March from 1.2 percent in the previous month.
The Labor Department is scheduled to release its more closely watched monthly report on consumer price inflation on Thursday.
Consumer prices are expected to rise by 0.2 percent in March after slipping by 0.2 percent in February. Core consumer prices are also expected to climb by 0.2 percent.
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