The Producer Price Index (PPI) for final demand in the US declined to 2.7% on a yearly basis in March from 4.6% in February, the data published by the US Bureau of Labor Statistics revealed on Thursday. This reading came in lower than the market expectation of 3%.

The annual Core PPI dropped to 3.4% in the same period from 4.5%, matching analysts' estimate. On a monthly basis, the PPI and the Core PPI came in at -0.5% and -0.1%, respectively.