The Producer Price Index (PPI) for final demand rose by 3.2 percent over the 12 months ending in February, remaining unchanged in February itself. Prices for final demand goods increased by 0.3 percent, while the index for final demand services declined by 0.2 percent.
The report states that in February, prices for final demand goods increased by 0.3%, which offset a 0.2% decline in the index for final demand services. Additionally, the index for final demand, excluding foods, energy, and trade services, rose by 0.2% in February following a 0.3% increase in January. Over the 12 months leading up to February, prices for final demand, excluding foods, energy, and trade services, advanced by 3.3%.
Final Demand Goods: In February, the index for final demand goods rose by 0.3 percent, marking the fifth consecutive increase. The significant driver of this February rise was a 1.7 percent jump in prices for final demand foods. Additionally, the index for final demand goods, excluding foods and energy, increased by 0.4 percent. However, prices for final demand energy decreased by 1.2 percent. Notably, two-thirds of the overall increase in the index for final demand goods can be attributed to a 53.6 percent rise in chicken egg prices. Other categories that saw price increases include pork, fresh and dry vegetables, electric power, tobacco products, and carbon steel scrap. In contrast, gasoline prices fell by 4.7 percent, and there were also declines in the indexes for processed young chickens and primary basic organic chemicals.
Final Demand Services: In February, the index for final demand services decreased by 0.2 percent, the largest drop since July 2024. This decline was largely due to a 1.0 percent decrease in margins for final demand trade services. Prices for services excluding trade, transportation, and warehousing rose by 0.2 percent, while transportation and warehousing services remained unchanged. Over 40 percent of the decline was linked to a 1.4 percent drop in margins for machinery and vehicle wholesaling, with prices also falling in food and alcohol retailing, automobile parts retailing, and other sectors. Conversely, inpatient care prices increased by 0.8 percent, along with rises in hospital outpatient care and machinery parts wholesaling.
The full February 2025 report can be found here.
