The PPI rose by 0.5% in March following a 0.5% gain in February, less than expected, with energy prices up 8.5% and food prices down 0.3%.
Core prices, which exclude food and energy, rose by 0.1%, also below expectations, after a 0.3% increase in the previous month.
Services prices were flat in March, with trade services prices down 0.3%
The year-over-year rise in producer prices accelerated to 4% from 3.4% in the prior month, while core prices remained at 3.8% year-over-year.
The National Federation of Independent Business' monthly sentiment index fell to 95.8 in March from 98.8 in February, with declines in eight of the 10 components, particularly the earnings trend.
"The 20% Small Business Deduction and other supportive small business tax provisions in the Working Families Tax Cut Act have had many positives for small business owners," said NFIB Chief Economist Bill Dunkelberg. "However, the dramatic spike in oil prices has spooked consumers and owners alike. Small business owners are having to absorb those higher input costs and pass them along to their customers."
Redbook reported that US same-store retail sales were up 7% year-over-year in the week ended April 11, smaller than a 7.6% gain in the prior week due to store closures on Easter Sunday. Seasonal items drove sales in the current week.