U.S. wholesale inflation jumps 0.7% in February
Wholesale inflation in the U.S. rose 0.7% in February—the sharpest monthly climb since mid‑2025—raising the prospect of rising vendor costs for materials, insurance, and energy (armstrongeconomics.com). The move amplifies cash‑flow risk for small contractors who carry inventory or extend credit on longer jobs.
Final‑demand goods rose 1.1% in February, the largest monthly increase for that category since August 2023. (bls.gov) Forty percent of the month’s goods increase was traced to final‑demand food prices, which jumped 2.4%, while final‑demand energy rose 2.3%. (bls.gov) Processed goods for intermediate demand climbed 1.6% and unprocessed goods advanced 3.1% in February. (bls.gov) Diesel fuel surged 13.9% month‑over‑month, gasoline rose 1.8%, and crude petroleum increased 4.7% — all line items in the PPI tables. (bls.gov) Truck transportation of freight rose 1.2%, steel mill products increased 3.0%, and carbon steel scrap was up 5.6% in the February data. (bls.gov) The index for final‑demand services less trade, transportation, and warehousing moved up 0.6%, while final‑demand trade services rose 0.4% and transportation and warehousing services climbed 0.5%. (bls.gov) On a 12‑month basis the index for final demand was up 3.4%, and final‑demand less foods, energy, and trade services was up 3.5% for the year ending in February. (bls.gov) Futures markets and Treasury yields moved after the print, with futures traders pushing out expectations for the next Fed rate cut and Treasury yields rising following the report. (cnbc.com)
