· Finished
producer prices in the U.S. soared 1.1% last month, up sharply from the
unrevised 0.3% February increase. The increase nearly doubled Consensus
expectations for a 0.6% rise and it was the strongest rise since last
November.
· Energy prices surged 2.9% (20.4% y/y) as home heating oil prices spiked by 13.1% (52.0% y/y) and natural gas prices increased 4.2% (4.0% y/y). Gasoline prices continued firm and rose 1.3% (36.4%).
· Why Do Gasoline Prices React to
Things That Have Not Happened? from the Federal Reserve Bank of St.
Louis is available here. 
· Finished consumer food prices spiked 1.2% (5.8% y/y). During the past three months food prices have risen at a 10.1% annual rate led by soaring egg prices (56.3% y/y), higher dairy prices (13.5% y/y), higher coffee prices (13.8% y/y) and higher bakery product prices (7.8% y/y). That strength has been offset somewhat by easier gains in prices for beef & veal (-0.3% y/y) and fresh fruits (0.0% y/y).
· Less food and energy, prices matched expectations and rose a more moderate 0.2%, less than half the 0.5% February surge. Prices of core finished consumer goods rose 0.3% (3.3% y/y) due to strength in nondurable prices (4.4% y/y). Capital equipment prices rose a modest 0.1% (2.0% y/y), about equal to the rise for all of last year.
· Intermediate goods prices surged 2.3% on the strength of a 2.9% (20.0% y/y) jump in food prices and a 5.9% (26.8% y/y) increase in energy prices. Excluding food & energy, prices about doubled the February rise with a 1.1% increase.
· The crude materials PPI continued to
surge and rose 8.0%. Crude energy materials prices jumped another 13.4%
(47.1% y/y) and food prices jumped 2.0% (18.1% y/y). The core crude
materials PPI also was quite firm and rose 3.5%, about the same as it
did in February. Prior strength in prices for iron & steel scrap
eased a bit to a 16.0% y/y rise. That was down from last year's full
year increase of 21.4%.
· Financial Market Turmoil and the Federal Reserve: The Plot Thickens is yesterday's speech by Federal Reserve Board Governor Kevin Warsh ad it can be found here.