Wholesale prices overall were flat in February, according to the latest producer price index report from the Bureau of Labor Statistics.
Three of the four supply-chain stages recorded higher goods prices in February, suggesting suppliers may be cutting into their margins to keep wholesale prices steady as their input costs increase.
The producer price index, considered a leading indicator for pipeline inflation pressures, showed no gain for the month after jumping an upwardly revised 0.6% in January, seasonally adjusted figures showed. Economists surveyed by Dow Jones had been looking for a 0.3% increase.
On a year-over-year basis, overall producer prices increased 3.2%, down from the 3.7% pace in January. Core PPI was up 3.4% in February, down 0.4% from January.
Stage 4 goods inputs, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, rose 0.3% in February after a 0.4% increase in January. Overall, Stage 4 intermediate demand rose 2% in February.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, rose 1.9% in February after a 2% increase in January. Overall, year-over-year Stage 3 demand rose 2.1% in February, the second-largest year-over-year increase since July 2024.
Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, declined 1% in February after a 5.5% increase in January and a 3.4% increase in December. Overall, Stage 2 intermediate demand rose 2.3% in February.
Finally, goods inputs for Stage 1 demand rose 0.6% in February after a 1.1% increase in January. Overall, Stage 1 intermediate demand rose 1% in February after January’s 1.2% increase, the largest since July 2024.
The PPI report was released a day after the consumer price index (CPI) report. The CPI found consumer prices rising 0.2% in February, up 2.8% year-over-year. The CPI totals were a slight decrease from January’s data.
