Wholesale prices increased in all four supply-chain stages in February, bucking recent trends of lower prices.
The producer price index (PPI), which measures pipeline costs for raw, intermediate and finished goods, jumped 0.6% on the month, the Labor Department’s Bureau of Labor Statistics reported. The increase was higher than analysts’ 0.3% forecast and higher than a 0.3% increase in January.
On a year-over-year basis, the PPI increased 1.6%, the biggest rise since September 2023.
Stage 4 goods inputs, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, rose 0.6% in February after being flat in January and December. The increase was the first monthly rise for Stage 4 goods inputs since September 2023. Overall, Stage 4 intermediate demand rose 1.8% in February.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, rose 2.4% in February after a revised 0.1% increase in January. Before February, Stage 3 goods inputs rose once in the previous four months. Overall, year-over-year Stage 3 demand fell 0.9% year-over-year. February marked the 12th consecutive month of year-over-year price decreases.
Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, rose 1.1% in February after a revised 1.6% increase in January. Stage 2 goods input fell in each of the final three months of 2023 before rising the past two months. Overall, Stage 2 intermediate demand dropped 0.8% year-over-year.
Finally, goods inputs for Stage 1 demand rose 1.4% in February after a 0.2% decline in January. The increase was the first Stage 1 goods increase since September 2023.
