The core rate in PPI rose 0.2% for February. This follows gains of 0.2% in December and 0.4% in January.Year over Year
The core rate continues to defy the weak demand which is undoubtedly pressuring producers as capital equipment prices 0.1%.
It is likely that the trend in core prices will weaken in the months ahead.
The total PPI was up 0.1%. A surprising 1.6% drop in food prices held back the overall gain. Energy prices were up 1.3%, about as expected. Food and energy each account for about 18% of the total index.
The overall data reflect few price pressures as the year-over-year increase for PPI is at -1.3%. The core rate is at 4.0% on a year-over-year basis but falling.
Month over Month