According to the latest report from the Labor Department’s Bureau of Labor Statistics, U.S. producer prices increased more than expected in February.
The Producer Price Index for final demand increased by 0.7% last month, driven by services, following an unrevised 0.5% rise in January.
On a 12-month basis, headline PPI inflation was at 3.4%, the most since February 2025, while core was at 3.9%.
U.S. producer prices may continue to rise as the Middle East conflict drives up oil prices and the ongoing import pass-through effect persists.
The news comes as Federal Reserve members convene for their two-day policy meeting this week, with the Reserve maintaining its target of 2% inflation amid escalating global geopolitical tensions.
All attention will be on Powell’s messaging as this should be his next-to-last meeting as chair.
Former Kansas City Fed president Esther George said in an interview, “Even if you get this resolved in a month or two, you’re going to have the lingering effects of these higher prices going into the fall.”
By CEO NA Editorial Staff
