Producer Prices Unexpectedly Fell in February

The Producer Price Index (PPI) fell 0.1% last month and recorded the smallest annual gain in almost two years


Getty Images

Wholesale inflation unexpectedly dropped last month to the lowest annual rate in almost two years as prices for food and energy declined. 

The Labor Department’s Producer Price Index (PPI) fell 0.1%, while economists had been anticipating an increase. The January PPI was revised downward from a gain of 0.7% to 0.3%. For the year, the PPI was up 4.6%, a slide of 1.1 percentage points from January, and well below estimates. It hasn't been that low since March 2021.

Excluding prices for food, energy, and trade services, the index was up 0.2%, following the 0.5% rise the previous month.

Egg Prices Plummet

Final demand costs for goods lost 0.2%, with more than 80% of that decline attributable to the 36.1% plunge in egg prices. Overall food costs tumbled 2.2%. Energy prices were down 0.2%. Excluding those two, goods prices were 0.3% higher. 

Final demand prices for services fell 0.1%, the same as in January. They were led lower by a 0.8% slide in costs for trade services, and a 1.1% dip in prices for transportation and warehousing services. Without those included, services prices rose 0.3%.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. U.S. Bureau of Labor Statistics. "Producer Price Index News Release Summary: February 2023."

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.