U.S. producer prices rose in March less than economists expected, despite energy costs surging as a result of the war with Iran. The Bureau of Labor Statistics said Tuesday that the annual producer price index for final demand increased 4 percent. Despite beating projections, this hike remains the largest annual increase since February 2023. The index is up 0.5 percent last month against an expected hike of 1.1 percent; the increase matches the 0.5 percent increase in producer prices in February.

Goods prices jumped 1.6 percent, led by an 8.5 percent increase in energy and a 15.7 percent surge in gasoline, while services prices were unchanged. 

Producer price increases are considered a leading indicator of consumer inflation. Many economists expect further inflationary pressure as oil prices continue to rise.