The Digester

Wholesale prices jump 0.7% in February; annual PPI at 3.4%

Mar 18th 2026

The Bureau of Labor Statistics reported a 0.7% monthly rise in the producer price index for February, with core PPI up 0.5%, signaling persistent pipeline inflation driven by services, goods, food and energy.

  • Headline PPI rose 0.7% in February and core PPI rose 0.5%, both above economists' 0.3% forecasts.
  • On a 12-month basis headline PPI was 3.4% and core PPI was 3.9%, both above the Fed's 2% target.
  • Services were a major driver with a 0.5% monthly rise and sharp increases in portfolio management and brokerage fees.
  • Goods prices climbed 1.1% while food rose 2.4% and energy rose 2.3%, with fresh and dry vegetables up 48.9%.
  • Markets slipped and Treasury yields rose as traders pushed out the next Fed rate cut until at least December, and the Fed is widely expected to hold rates at 3.5% to 3.75% later today amid Middle East driven oil price risks.

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