US producer prices up 0.8% m/m in February

According to seasonally adjusted data by the US Bureau of Labor Statistics, producer prices in the US increased by 0.8% m/m in February 2022, decelerating from the 1.2% m/m growth in the previous month. On an unadjusted basis, final demand PPI rose by 10% y/y, the highest since data were first collected in 2010, and unchanged from the previous month performance. The indices for food and energy, which were driving overall PPI up throughout 2021 continued to be a factor, jumping by 1.9% and 8.2% m/m respectively. Producer prices for goods increased by 2.4% m/m, the highest monthly increase on record, while services PPI remained unchanged compared to January. Core PPI, which excludes volatile energy and food prices, increased by 0.7% m/m seasonally adjusted, and 6/6% y/y non-seasonally adjusted.

On an unadjusted basis, final demand PPI rose by 10% y/y

The update in producer prices data comes just before the Fed policy meeting on March 15-16. In light of the recent developments in inflation, labour market and domestic consumption, it is almost certain that the Fed would hike rates for the first time since 2018. However, the hike would likely be modest.

More data on US inflation in the US Monetary Policy and Financial Sector databank