U.S. Wholesale Prices Flat in February as Energy Costs Drop and Egg Prices Surge
The Producer Price Index showed no monthly change, surprising economists, as falling gas prices offset a sharp rise in egg prices linked to avian flu.
- The Producer Price Index (PPI) remained unchanged in February, following a revised 0.6% increase in January, according to the Bureau of Labor Statistics.
- Gas prices fell 4.7%, contributing to the flat PPI, while wholesale egg prices soared 53.6% due to avian flu-related supply issues.
- Core PPI, which excludes food and energy, decreased by 0.1%, contrary to economists' expectations of a 0.3% increase.
- The data suggest easing inflationary pressures, though new tariffs announced by President Donald Trump may disrupt this trend in the coming months.
- The Federal Reserve is expected to maintain current interest rates next week, with the cooling inflation providing flexibility for future policy decisions.