Updated: 15-Mar-23 09:33 ET

February PPI

Updated: 15-Mar-23 09:33 ET

Highlights

• The Producer Price Index for Final Demand declined 0.1% month-over-month in February (Briefing.com consensus +0.3%) following a downwardly revised 0.3% increase (from 0.7%) in January.
• Excluding food and energy, the index for final demand was flat month-over-month (Briefing.com consensus +0.4%) following a downwardly revised 0.1% increase (from 0.5%) in January.
• On a year-over-year basis, the index for final demand was up 4.6% versus up 5.7% in January, while the index for final demand, excluding food and energy, was up 4.4% versus up 5.0% in January.

Key Factors

• The index for final demand goods declined 0.2% month-over-month with a 2.2% decrease in prices for final demand foods leading the decline.
• The index for final demand services was down 0.1% month-over-month, dragged down by a 0.8% decline in margins for final demand trade services.

Big Picture

• The key takeaway is that this should be seen by the Fed as a pleasing inflation report, as it also featured month-over-month declines in pipeline measures that include the index for processed goods for intermediate demand (-0.4%) and the index for unprocessed goods for intermediate demand (-3.8%).

Category	FEB	JAN	DEC	NOV	OCT
Final Demand	-0.1%	0.3%	-0.2%	0.3%	0.3%
Core (excluding ...)
Food and Energy	0.0%	0.1%	0.3%	0.3%	0.2%
Food, Energy, and Trade	0.2%	0.5%	0.2%	0.4%	0.2%
Final Demand Goods
Total	-0.2%	1.2%	-1.4%	0.3%	0.4%
Energy	-0.2%	5.2%	-6.3%	-2.2%	1.5%
Finished Goods	-0.3%	1.4%	-1.1%	0.5%	0.8%
Final Demand Services
Total	-0.1%	-0.1%	0.4%	0.3%	0.2%
Trade	-0.8%	-1.1%	0.7%	0.2%	0.2%
Intermediate Demand
Processed	-0.4%	1.1%	-2.5%	-0.5%	-0.2%
Unprocessed	-3.8%	-6.3%	1.6%	-3.1%	-9.7%
Services	0.3%	0.7%	0.0%	0.8%	0.4%