Wholesale inflation fell unexpectedly in February, indicating that persistently high consumer prices are loosening their stronghold on the US economy.
According to the Labor Department, the producer price index, which monitors inflation at the wholesale level before it reaches consumers, decreased by 0.1% in February compared to the previous month. Prices are up 4.6% year on year, slightly below the 5.7% increase reported in January.
Producer Price Index (PPI) Fell Drastically
Refinitiv polled economists predicted that the 12-month rise in wholesale prices would slow to 5.4%.
Taking away the volatile food and energy components, core PPI fell sharply: annual price rises fell to 4.