The producer price index (PPI) fell 0.1% in February, excluding food and energy, after rising 0.6% in January. This marks the first negative reading since July. Economists had predicted a 0.3% increase.
Wholesale prices remained flat, providing some relief on inflation concerns. The core PPI, which measures final demand prices for producers, was also down 0.1%. However, goods prices rose 3.2% year-over-year, above the Federal Reserve’s 2% goal.
The Federal Reserve is closely watching inflation data, with a Commerce Department measure expected later this month. Fed officials are taking a cautious approach due to President Trump’s fiscal and trade policies, leading markets to expect a rate cut in June.
Source: https://www.cnbc.com/2025/03/13/ppi-inflation-report-february-2025-.html