The Labor Department reported on Thursday the U.S. producer-price index (PPI) fell 0.2 percent m-o-m in March, following an unrevised 0.6 percent m-o-m drop in February.

For the 12 months through March, the PPI increased 0.7 percent, decelerating from 1.3 percent in the previous month.

Economists had forecast the headline PPI would decrease 0.4 percent m-o-m but rise 0.5 percent over the past 12 months.

According to the report, the February decline in the final demand index can be traced to a 1.0-percent m-o-m fall in prices for final demand goods. Meanwhile, the index for final demand services increased 0.2 percent m-o-m.

Excluding volatile prices for food and energy, the PPI rose 0.2 percent m-o-m and surged 1.4 percent over 12 months. Economists had forecast no change m-o-m and a gain of 1.2 percent y-o-y.