Producer prices in the US remained flat in February 2025 compared to January, following an upwardly revised 0.6% increase in the previous month and falling short of the expected 0.3% gain.
US producer prices flat in February
This marks the lowest rate in seven months. Service prices declined by 0.2%, the steepest drop since July 2024, driven by a 1.4% decrease in margins for machinery and vehicle wholesaling. Prices also fell for food and alcohol retailing, automobile retailing, apparel, footwear, accessories, chemical wholesaling, and residential real estate loans. Conversely, goods prices edged up 0.3% for the fifth consecutive month, with two-thirds of the increase attributed to a 53.6% surge in chicken egg prices.
Sectorial data
Higher prices were also seen in pork, fresh and dry vegetables, electric power, tobacco products, and carbon steel scrap. On an annual basis, producer prices rose 3.2%, down from an upwardly revised 3.7% in January and below the expected 3.3%. The core PPI fell 0.1% month-over-month and 3.4% year-over-year, significantly underperforming forecasts.
