However, on a 12-month basis, PPI rose 2.1%, the largest increase since April 2023, indicating pipeline pressures that could keep inflation high.
Core PPI, which excludes food and energy, also rose 0.2%, in line with expectations. Excluding trade services from the core level, growth was 0.2% month-on-month, but 2.8% year-on-year.
The announcement came a day after the BLS reported that consumer prices rose more than expected again in March, raising concerns that the Federal Reserve may not be able to cut interest rates anytime soon.
Producer prices rose 0.3% month-on-month, with the service industry driving up the rise in March. Within this category, the index for brokerage commissions and other investment-related fees increased his 3.1%.
Conversely, prices fell by 0.1%, a reversal from February's 1.2% rise. Final demand costs for energy, which have been trending upward recently, actually fell by 1.6% over the month. However, wholesale prices for final demand food and goods excluding food and energy rose by 0.8% and 0.1%, respectively.
Although prices are on the rise, the final demand index for gasoline fell by 3.6%. This was in contrast to the Consumer Price Index, where gasoline rose 1.7% from the same month.
Markets had little reaction to the data, with U.S. Treasury yields falling but futures prices tracking major stock indexes rising slightly.
In other economic news Thursday, first-time claims for unemployment insurance fell to 211,000, down 11,000 from last week's upwardly revised level and below the Dow Jones estimate of 217,000.
According to an announcement by the Ministry of Labor, the number of applications for continuations that were delayed by one week increased by 28,000 over the same period to 1.82 million.
Economic indicators are in the spotlight as the US Federal Reserve considers its next move on monetary policy.
Wednesday's CPI announcement shocked markets that had been expecting an aggressive series of rate cuts this year. The annual inflation rate is running at 3.5%, well above the Fed's 2% target, according to the report.
Markets are currently pricing in the possibility of just two rate cuts this year, with one likely to start in September, according to CME Group data.