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U.S. Wholesale Inflation Jumps in February, Topping Forecasts

The hotter PPI print arrives just before a Fed rate decision and underscores caution on further cuts.

Overview

  • Producer prices rose 0.7% from January and 3.4% from a year earlier, the largest annual gain since February 2025.
  • Core wholesale prices excluding food and energy increased 0.5% on the month and 3.9% year over year, exceeding estimates.
  • Food was the biggest driver, up 2.4%, with fresh and dry vegetable prices surging 48.9%; final demand goods rose 1.1% and services 0.5%.
  • The report predates the late‑February U.S./Israel conflict with Iran, and analysts expect the nearly 50% jump in oil to lift March wholesale energy costs.
  • U.S. stocks turned lower after the release as average gasoline rose to $3.84 per gallon and diesel prices climbed faster.