March PPI comes in below forecasts but still rises 0.5%; annual rate hits 4%, a three-year high, with more upside ahead

March producer prices increased 0.5%, undershooting expectations but still posting a solid monthly gain. On a year-over-year basis, PPI climbed 4%, the strongest increase in more than three years. The bigger takeaway is the direction from here: upward pressure is expected to persist. By 2026, PPI is projected to rise more than the 6.2% jump seen in 2022 and could exceed the 10% surge recorded in 2021.