The Producer Price Index for final demand rose 0.6 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.3 percent in January and edged down 0.1 percent in December 2023. (See table A.) On an unadjusted basis, the final demand index advanced 1.6 percent for the 12 months ended in February, the largest rise since moving up 1.8 percent for the 12 months ended September 2023. In February, nearly two-thirds of the rise in final demand prices can be traced to the index for final demand goods, which advanced 1.2 percent. Prices for final demand ... (full story)

Inflation, as measured by the producer price index, rose to 1.6% for the year ending in February, the Bureau of Labor Statistics reported Thursday, much hotter than expected. The increase came after a slight decrease the month before. Most economists had forecast the inflation rate would rise to 1.1%, so the latest numbers are not good news for the Federal Reserve. On a month-to-month basis, the price index increased by 0.6%, double what was expected. The new inflation numbers come the same week the more closely watched consumer price index report for February was released. As measured in the CPI, inflation ... (full story)