Skip to content

U.S. Producer Prices Rise 10%, Reinforcing Fed’s Rate-Hike Path

  • PPI increases 0.8% from month earlier after 1.2% in January
  • Goods prices drove gains, mostly due to higher cost of energy
Updated on

Prices paid to U.S. producers rose strongly in February on higher costs of goods, underscoring inflationary pressures that set the stage for a Federal Reserve rate hike this week. 

The producer price index for final demand increased 10% from February of last year and 0.8% from the prior month, Labor Department data showed Tuesday. That followed an upwardly revised 1.2% monthly gain in January.