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US producer prices rose 0.7% in February, much more than expected
Producer prices rose 0.7% in February, driven by services and a 3.4% annual increase, with inflation pressures linked to rising oil prices amid Middle East tensions.
- The U.S. Bureau of Labor Statistics reported on March 18 that the Producer Price Index for final demand surged 0.7% last month, lifted by services, exceeding forecasts.
- Rising service and energy costs lifted the monthly PPI as higher service-sector prices contributed, while analysts warned import pass-through and oil prices surging more than 40% due to the U.S.-Israeli war with Iran may accelerate inflation.
- In the 12 months through February, the PPI increased 3.4% after advancing 2.9% in January, while January monthly rise 0.5% remained unrevised during the two-day Federal Reserve policy meeting.
- Financial markets reacted by pricing only one rate cut this year as some components of the PPI feed into the Personal Consumption Expenditures price indexes the Fed tracks for its 2% inflation target, while Federal Reserve officials will submit projections economists expect to upgrade.
- With the March reports due next month, economists expect the war's inflationary impact to show in the March consumer and producer price reports next month, while the Bureau of Economic Analysis will publish the delayed February PCE inflation report that could confirm pass-through to consumer prices.
69 Articles
69 Articles
Producer prices in the United States rose 0.7 percent in February from January and 3.4 percent year-over-year, the Labor Department said. The monthly increase was well above analysts' expectations of a 0.3 percent gain.
Wholesale inflation hits highest level in a year — and Iran war is fueling more rising prices fears
US wholesale prices came in hotter than expected in February. The Labor Department reported Wednesday that its producer price index — which measures inflation before it hits consumers — rose 0.7% from January, and 3.4% from February 2025. The year-over-year increase was the most since February 2025.
US producer prices rose faster than expected in February. He does not expect an interest rate step at the central bank meeting on Wednesday evening, says Patrick Dewayne. However, it becomes interesting to see what future Fed boss Powell suggested.
US wholesale prices rose by a surprisingly hot 3.4% last month, the most in a year
WASHINGTON (AP) — U.S. wholesale prices came in hotter than expected in February, driven partly by a sharp increase in food costs. The Labor Department reported Wednesday that its producer price index — which measures inflation before it hits consumers — rose 0.7% from January, and 3.4% from February 2025. The year-over-year increase was the [...]
US producer inflation jumps to 3.4% in February, dashing hopes of cooling prices
A stronger-than-expected rise in US producer prices in February has added to concerns that inflationary pressures are building again, with higher services costs and rising oil prices likely to keep the Federal Reserve cautious on rate cuts.
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