Producer prices from the BLS, chart by MishHere are details from the BLS Producer Price Index report for February.Month-Over-Month PPI vs Bloomberg Consensus
PPI 0.6 Percent vs Expected 0.3
PPI Goods 1.2 Percent
PPI Services 0.3 Percent
PPI Excluding Food and Energy 0.3 Percent vs Expected 0.2 Percent
PPI Key Details
The Producer Price Index for final demand rose 0.6 percent in February, seasonally adjusted. 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. This was the largest increase since moving up 1.7 percent in August 2023.
Nearly 70 percent of the broad-based rise in February can be attributed to the index for final demand energy, which jumped 4.4 percent. One-third of the February advance in the index for final demand goods can be traced to a 6.8-percent increase in prices for gasoline.
Final demand for food rose 1.0 percent. The indexes for diesel fuel, chicken eggs, jet fuel, beef and veal, and tobacco products also rose. Conversely, prices for hay, hayseeds, and oilseeds decreased 8.3 percent. The indexes for iron and steel scrap and for asphalt also fell.
Prices for final demand goods less foods and energy rose 0.3 percent.
Prices for final demand services moved up 0.3 percent in February after rising 0.5 percent in January. A quarter of the February increase in the index for final demand services can be attributed to a 3.8-percent rise in prices for traveler accommodation services.
The indexes for outpatient care (partial); airline passenger services; loan services (partial); securities brokerage, dealing, and investment advice; and alcohol retailing also moved up. Conversely, margins for chemicals and allied products wholesaling fell 6.4 percent. The indexes for automobiles and parts retailing and for services related to securities brokerage and dealing (partial) also decreased.
PPI Final Demand Year-Over-Year
PPI Final Demand Year-Over-Year Details
Final Demand: +1.6 Percent
Final Demand Services: +2.3 Percent
Final Demand Goods: +0.3 Percent
Final Demand Excluding Food and Energy: +2.0 Percent
It appears that year-over-year PPI prices have bottomed.Especially ominous is the month-over-month rise in food of 1.0 percent. This will pass through to CPI food prices which I have expected.
CPI Hot Again 
CPI Data from the BLS, chart by Mish.For discussion of the CPI inflation data for February, please see CPI Hot Again, Rent Up at Least 0.4 Percent for 30 Straight MonthsFor over two years, analysts said rent was declining or soon would be. But for the 30th consecutive month, rent was up at least 0.4 percent. Gasoline rose 3.8 percent adding to the misery.
Sticky-Price CPIMeanwhile, the Atlanta Fed reports Sticky-Price CPI Is Up 4.4 Percent From a Year AgoAnd Biden’s regulations, big union wage increases, and student debt cancellation are all inflationary.So is the end of just-in-time manufacturing and global wage arbitrage.The rise in Inflation is not transitory. It’s the recent decline in reported year-over-year inflation that’s transitory.Food and energy producer prices will no longer help stabilize the CPI, something I also called for.This was a nasty PPI report.More By This Author:Family Dollar And Dollar Tree Will Close 1,000 Stores How Overpaid Are State And Local Government Workers Compared To Private? Unemployment Rates Rose In 218 Of The 389 Metropolitan Areas
