By Tom Burnett CFA
On March 15, 2022, the Bureau of Labor Statistics released the Producer Price Index data for February. The Index for Final Demand rose by 0.8% in February, down from a rise of 1.2% in January. The year-over-year increase was 10.0%, identical to the 12-month increase in January. In February, the prices of goods rose by 2.4%, while the Index for Services was unchanged.
Prices for the Core Index, excluding food and energy, rose by just 0.2%, down from an increase of 0.8% in January. The Core Index rose by 6.6% over the 12-month period, down from 6.8% in January.
Energy was the primary culprit in the February price increase. Gasoline rose by 14.8% in the month of February. Prices for produce and prepared foods actually moved lower in the month. For example, the cost of fresh and dried vegetables fell by 9.4% in the month.
The next Report will be issued on April 13, 2022.
Tom Burnett CFA is Director of Research