The Labor
Department reported on Friday the U.S. producer-price index (PPI) jumped 0.6
per cent m-o-m in February, following an unrevised 0.3 per cent m-o-m gain in January. This represented the
strongest monthly increase in PPI since August 2023 (+0.6 per cent m-o-m).
For the 12
months through February, the PPI surged by 1.6 per cent, sharply accelerating from
an upwardly revised 1.0 per cent advance (from
+0.9 per cent) in the previous month. This marked the strongest annual increase
since September 2023 (+1.8 per cent).
Economists had forecast
the headline PPI would climb 0.3 per cent m-o-m and 1.1 per cent over the past
12 months.
According to
the report, nearly two-thirds of the February rise in the headline index can be
traced to a 1.2 per cent m-o-m surge in the index for final demand goods. In
addition, the index for final demand services increased 0.3 per cent m-o-m.
Excluding
volatile prices for food and energy, the PPI went up 0.3 per cent m-o-m and
soared 2.0 per cent over 12 months. Economists
had expected advances of 0.2 per cent m-o-m and 1.9 per cent y-o-y for February.
In January, the core PPI demonstrated a 0.5 per cent m-o-m rise and a 2.0 per cent y-o-y climb.