The Producer Price Index for final demand remained unchanged in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.6% in January and 0.5% in December 2024. On an unadjusted basis, the index for final demand increased 3.2% for the 12 months ended in February.
The index for final demand less foods, energy, and trade services edged up 0.2% in February after rising 0.3% in December. For the 12 months ended in February, prices for final demand less foods, energy, and trade services rose 3.3%.
The index for final demand goods increased 0.3% in February, the fifth consecutive rise. Leading the February advance, prices for final demand foods jumped 1.7%. The index for final demand goods less foods and energy moved up 0.4%. In contrast, prices for final demand energy fell 1.2%. Two-thirds of the February increase in the index for final demand goods is attributable to prices for chicken eggs, which jumped 53.6%. Conversely, prices for gasoline declined 4.7%. The indexes for processed young chickens and for primary basic organic chemicals also decreased.
The index for final demand services fell 0.2% in February, the largest decline since moving down 0.2% in July 2024. The February decrease can be traced to margins for final demand trade services, which dropped 1.0%. In contrast, prices for final demand services less trade, transportation, and warehousing rose 0.2%, while the index for final demand transportation and warehousing services was unchanged. Over 40% of the February decline in prices for final demand services is attributable to margins for machinery and vehicle wholesaling, which decreased 1.4%.
Read the BLS release.
