Despite the impact of the conflict in Iran on energy prices, producer prices increased less than was expected in March. 

The seasonally adjusted producer price index (PPI), which is a measure of inflation at the wholesale level, increased 0.5% for the month, according to a Bureau of Labor Statistics report on Tuesday.

The increase was considerably less than the Dow Jones consensus estimate of 1.1%, CNBC reported. 

The core PPI, which excludes food and energy, was up 0.1% compared to the estimate of 0.5%. The inflation rate for services, which is watched closely by Federal Reserve policymakers, was flat for the month.