The Producer Price Index for final demand fell 0.6 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.5 percent in January and 0.2 percent in December. On an unadjusted basis, the final demand index increased 1.3 percent for the 12 months ended in February.
Prices for final demand less foods, energy, and trade services inched down 0.1 percent in February, the first decline since falling 0.1 percent in June 2019. For the 12 months ended in February, the index for final demand less foods, energy, and trade services rose 1.4 percent.
Final demand goods: The index for final demand goods fell 0.9 percent in February, the largest decline since moving down 1.1 percent in September 2015. Over 60 percent of the broad-based February decrease can be traced to prices for final demand energy, which dropped 3.6 percent. The indexes for final demand foods and for final demand goods less foods and energy declined 1.6 percent and 0.1 percent, respectively.
Final demand services: The index for final demand services fell 0.3 percent in February, the largest decline since moving down 0.3 percent in September 2019. In February, over 70 percent of the broad-based decrease can be traced to margins for final demand trade services, which dropped 0.7 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services declined 0.1 percent and 0.6 percent, respectively.
Read the BLS release.
