March 13 (UPI) — Wholesale Producer Price Index inflation stayed flat in February while economists surveyed by Dow Jones had expected a 0.3% increase. The Bureau of Labor Statistics said Thursday PPI inflation was 3.2% for the 12 months ended in February.
“The index for final demand less foods, energy, and trade services moved up 0.2% in February after rising 0.3% in January,” the BLS said in a statement. “For the 12 months ended in February, prices for final demand less foods, energy, and trade services advanced 3.3%.”
The BLS PPI report found a wholesale goods price hike of 0.3% was offset by a 0.2% reduction in services prices.
“Two-thirds of the February increase in the index for final demand goods is attributable to prices for chicken eggs, which jumped 53.6%,” the BLS added. “The indexes for pork, fresh and dry vegetables, electric power, tobacco products, and carbon steel scrap also moved higher. Conversely, prices for gasoline declined 4.7%.”
Economists in the Dow Jones survey had expected a 0.3% PPI increase in February. The PPI coming in lower is welcome news amid concerns that Trump administration tariffs and the tit-for-tat trade war they are igniting would be inflationary.
“The index for final demand services fell 0.2% in February, the largest decline since moving down 0.2% in July 2024. The February decrease can be traced to margins for final demand trade services, which dropped 1.0%,” BLS said.
Within services, the BLS said, more than 40% of the February drop in services prices is from “machinery and vehicle wholesaling margins for machinery and vehicle wholesaling, which decreased 1.4%.”
January PPI wholesale inflation rose 0.4% in January as unadjusted PPI was up 3.5% for the 12 months ended January 2025.