More good news on the inflation front as producer prices were flat in February, according to the latest data from the Bureau of Labor Statistics.
- M-O-M: Producer prices were unchanged in February, a big drop from the 0.6% jump in January (a 15-month high) and the lowest level since July 2024.
- Y-O-Y: Producer prices growth slowed to 3.3% when compared to the same time last year, down from 3.7% in January and the lowest level since November.
Chicken problems: Two-thirds of the February increase in the index for final demand goods is
attributable to prices for chicken eggs, which jumped 53.6%.
CORE: The index for final demand for less food and energy fell 0.1% in February, a big drop from the 0.5% rise in January and the first negative print since July 2024.
- Y-O-Y: Core price growth slowed to 3.4% in February, down from 3.8% in January and the lowest level since November.
Beat The Street: Economists were expecting a 0.3% rise in prices, which they thought would slow the annual index to 3.4%
Bottom Line: Producer prices slowing more than expected is a good sign that the drop in consumer price growth will continue to slow as well.