Seasonally adjusted producer prices in the U.S. edged down 0.2% month over month in March following a 0.6% fall in February, data from the U.S. Bureau of Labor Statistics showed.
The consensus estimate of economists polled by Econoday was for prices to drop 0.3%.
The drop in the producer price index was driven by a 1% fall in the index for final demand goods, the largest decline since September 2015, driven by a 6.7% drop in energy prices.
Meanwhile, the index for final demand services rose 0.2%.
Excluding foods, energy, and trade services, producer prices for final demand ticked down 0.2%, matching the decline last seen in October 2015.