February US Producer Price Index, Core PPI Both Rise More Than Expected, Year-Over-Year Rates Accelerate

08:45 AM EDT, 03/18/2026 (MT Newswires) -- The US Producer Price Index rose by 0.7% in February following a 0.5% increase in January, above the 0.3% gain expected in a survey compiled by Bloomberg as of 8:15 am ET.

Energy prices jumped by 2.3% in the month, while food prices rebounded by 2.4%.

After excluding food and energy prices, core PPI increased by 0.5%, above the 0.3% gain expected, but slower than a 0.8% gain in the previous month.

PPI was up 3.4% year-over-year in February while core PPI increased by 3.9% year-over-year, both above their respective January rates.

The monthly producer price index, or PPI, reported by the Bureau of Labor Statistics measures the index level of prices received by producers for products such as energy, food, vehicles, and services. The core measure, excluding the volatile food and energy components, is a measure of underlying inflation.

Sharply higher prices are a sign of demand, but an increase at the producer level without a pass-through to the consumer level would suggest smaller profits at the retail level. As a result, the stock reaction depends on the movements at both levels. Higher inflation is generally a negative for bonds.

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