US PPI flat in Feb

The US Producer Price Index (PPI) for final demand remained unchanged in February, following increases of 0.6 per cent in January and 0.5 per cent in December, according to a new report from the Bureau of Labour Statistics on Thursday. On annual basis, producer prices rose 3.2 per cent.

A 0.3 per cent rise in prices for final demand goods, driven by a 53.6 per cent surge in egg prices, offset a 0.2 per cent decline in final demand services. Energy prices fell 1.2 per cent, while food prices jumped 1.7 per cent.

Final demand services saw a 1.0 per cent drop in trade margins, led by lower prices in vehicle and apparel retailing. However, prices for inpatient care and hospital outpatient services rose.

For core PPI, which excludes food, energy, and trade services, prices increased 0.2 per cent in February and were up 3.3 per cent from a year earlier.

Intermediate demand showed mixed trends across production stages, with stage 3 prices rising 0.7 per cent, stage 1 up 0.1 per cent, while stage 2 fell 0.5 per cent.

The data suggest persistent inflationary pressures in goods, particularly food, while service-sector pricing remains more volatile.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser