Producer prices jump
U.S. producer prices rose 0.7% month-over-month and 3.4% year-over-year in February — the biggest monthly increase in seven months — and Fed officials warned higher energy costs from the Iran conflict could keep inflation elevated. That ups pressure on funding costs and makes residual-value forecasting and pricing harder for equipment, auto and floorplan lenders. (reuters.com)
The BLS release shows the February rise was broad-based: final-demand goods climbed 1.1% while final-demand services rose 0.5%, with food goods up 2.4% and energy goods up 2.3%; traveler-accommodation prices alone jumped 5.7% and accounted for about 20% of the services increase. (bls.gov) Equipment-finance lenders are flagging replacement-driven demand as the central 2026 trend while reworking residual models and credit overlays, according to the Equipment Leasing & Finance Association’s 2026 outlook. (elfaonline.org) Solifi’s March launch of Solifi Document Intelligence claims up to a 70% reduction in document verification time, a capability that accelerates origination workflows and helps lenders reprice deals faster under tighter funding spreads. (morningstar.com) Wholesale-used-vehicle pricing is tightening: Cox/Manheim’s mid‑March Used Vehicle Value Index rose to 213.4, up 0.5% month-to-month and 5.3% year-over-year, which complicates lease- and residual-value forecasts for auto and captive lenders. (coxautoinc.com) Solifi’s September 23, 2025 acquisition of DataScan added wholesale-intelligence and inventory-risk tools that already service more than 45 major banks and captive lenders, expanding analytics lenders can use to stress-test floorplan exposures. (solifi.com) Floorplan providers face rising carrying costs as PPI trade‑services and transportation & warehousing components increased 0.4% and 0.5% in February, and industry advisors report that pricing and access for dealer inventory lines are tightening. (bls.gov) Higher upstream input prices for processed goods and energy are squeezing working-capital cycles while policymakers boost targeted support: the SBA’s Working Capital Pilot reported delivering roughly $150 million in new lending to U.S. manufacturers since inception. (dol.gov) Peers are racing to automate underwriting and document verification — nCino rolled out Doc VOI on March 16 to automate document-based income checks and Fiserv has expanded AI-driven content/workflow tools — moves that mirror Solifi’s push to reduce origination friction as lenders reprice and tighten risk controls. (markets.financialcontent.com)
