A 48.9% increase in prices for fresh and dry vegetables was a big factor in the rising index for foods in February, the U.S. Burea of Labor Statistics reported Wednesday. File Phot by Gary C. Caskey/UPI | License Photo
The producer price index for final demand goods had its sharpest rise since 2023 in February, the Bureau of Labor Statistics reported Wednesday.
The index for final demand goods — items like food and clothing — increased by 1.1% for the month. The last time the index rose by that much was August 2023 when it was up 1.6%.
Wednesday’s report comes before the Federal Reserve is expected to announce its decision on interest rates later in the day.
Foods were the biggest contributor to the increase, jumping by 2.4%. The index for energy rose 2.3% though the report predates the United States and Israel launching a war with Iran on Feb. 28.
A 48.9% increase in prices for fresh and dry vegetables was a big factor in the rising index for foods. BLS estimates more than 20% of the food index increase was attributable to fresh and dry vegetable prices.
Excluding food and energy, the producer price index went up 0.5%. The Dow Jones consensus estimated a 0.3% increase.
February also marked the largest increase in inflation on an annual basis, up 3.4%. It is the highest mark since February 2025, when core inflation rose 3.9%.
The index for final demand services climbed 0.5% in February, up for the third consecutive month.
Prices for traveler accommodation services rose by 5.7%, making an estimated 20% impact on the overall increase in the index for final demand services.
This week in Washington
Chair of the Federal Reserve Jerome Powell speaks during a press conference at the Federal Reserve on Wednesday. The Federal Reserve announced that it will hold rates steady. Photo by Bonnie Cash/UPI | License Photo
