U.S. Wholesale Prices Increase 0.6% in February
Nearly Two-Thirds of Increase Attributed to Final Demand Goods
Whole prices in the United States increased by 0.6 percent in February 2024, the Bureau of Labor Statistics has reported. This rise in the Producer Price Index for final demand marks a significant uptick from January's 0.3 percent increase and December 2023's 0.1 percent decrease. On an annual basis, the final demand index surged by 1.6 percent for the 12 months ended in February, the most substantial rise since September 2023's 1.8 percent increase.
A recent BLS press release said the Consumer Price Index rose 0.4 percent in February.
Final Demand Prices Driven by Goods Sector
In February, approximately two-thirds of the surge in final demand prices stemmed from the index for final demand goods, which witnessed a robust 1.2 percent increase. Conversely, prices for final demand services experienced a more moderate uptick of 0.3 percent.
Goods Sector Surges 1.2%
The final demand goods sector saw a notable surge of 1.2 percent in February, largely fueled by a staggering 4.4 percent increase in the index for final demand energy. Notably, prices for final demand goods excluding foods and energy, as well as final demand foods, also observed increments of 0.3 percent and 1.0 percent, respectively.
Related News: US inflation may have eased in May, but underlying price measures likely remained high
Services Sector Insights
Meanwhile, the final demand services sector registered a 0.3 percent increase in February. Leading this rise, the index for final demand services less trade, transportation, and warehousing surged by 0.5 percent.
Intermediate Demand by Commodity Type
Within intermediate demand, processed goods recorded a significant surge of 1.6 percent in February, with the index for unprocessed goods also increasing by 1.2 percent. Services prices, however, witnessed a marginal uptick of 0.1 percent.
Processed Goods and Unprocessed Goods Details
Processed goods for intermediate demand saw a substantial uptick of 1.6 percent, largely driven by a 6.2 percent surge in prices for processed energy goods. Conversely, unprocessed goods for intermediate demand increased by 1.2 percent, mainly fueled by a 3.6 percent rise in prices for unprocessed energy materials.
Services for Intermediate Demand
Services for intermediate demand experienced a slight increase of 0.1 percent in February, led by a 1.1 percent surge in the index for transportation and warehousing services.
Source: BLS Press Release
More Related News:
US import prices decline in February as export prices edge up
