However, categories that inform the Fed’s preferred inflation measure — the personal consumption expenditures price index — were largely firmer, including a 1% increase in hospital inpatient care and a 0.5% rise in portfolio management costs.
Also Read: US agencies face Thursday deadline to submit mass layoff plansThe wholesale data follow a BLS report from Wednesday which showed consumer prices rose just 0.2% last month, the smallest increase since October. However, details from the CPI also pointed to a higher PCE price gauge when that figure is reported later this month.
Meanwhile, President Donald Trump has since announced sweeping tariffs on the country’s biggest trading partners, which are set to raise the prices of imported goods in the months ahead.
Excluding food and energy, the PPI fell 0.1% last month, the first decrease since July. The core was up 3.4% from a year earlier. Details indicated the decline in services was offset by higher goods prices. Services costs overall declined 0.2%, reflecting declining margins at wholesalers and retailers. Goods prices, excluding food and energy, rose 0.4%, the most since the start of 2023.
Also Read: US recession fear: Trump tariffs cap the cheer from easing inflation
The PPI data also showed that food prices rose 1.7%, the most in three months, while energy costs declined 1.2%. The Bloomberg Commodity Index rose in mid-February to the highest level since 2023 before tumbling in the final week of the month amid a broader rout in financial markets.
