Wholesale prices spike
U.S. wholesale prices jumped 3.4% in February—the biggest monthly rise in a year—and that surge is driving higher grocery bills as food and energy costs climb amid supply disruptions and bad weather in key growing areas. The report ties price pressure to oil‑flow disruptions, fertilizer shortages and a wet November in Yuma that rippled through food supply chains. (abc11.com) (armstrongeconomics.com) (breitbart.com) (witn.com)
The Bureau of Labor Statistics said the Producer Price Index for final demand rose 0.7% in February (seasonally adjusted), with final demand goods up 1.1% and final demand services up 0.5%. (bls.gov) BLS product-level detail attributes more than 20% of the February gain in final demand goods to a 48.9% jump in the index for fresh and dry vegetables. (bls.gov) The agency’s commodity table shows diesel fuel prices within the PPI surged 13.9% in February, while crude petroleum rose 4.7% and gasoline increased 1.8% during the month. (bls.gov) National Weather Service climate data records Yuma, Arizona, at 1.44 inches of precipitation in November 2025 versus a 1991–2020 November normal of 0.23 inches, and USDA National FOB Review notes plus industry market reports documented sharply tighter Western Arizona iceberg supplies and elevated FOB prices in late January–early February. (weather.gov) The International Energy Agency reported oil and product flows through the Strait of Hormuz plunged from roughly 20 million barrels per day to a trickle amid recent Middle East fighting, with Gulf producers cutting output by at least about 10 million barrels per day. (iea.org) Energy forecasters at the U.S. Energy Information Administration projected a Q2 2026 Brent crude average near $91 per barrel amid near-term disruptions, and multiple news outlets flagged rising fertilizer costs and supply constraints—linked in coverage to the same geopolitical shocks—as an added input shock for growers. (eia.gov) Market data services and economists noted the February PPI surprised consensus (0.7% actual versus roughly 0.3% expected), with analysts pointing to food and energy subcomponents as the primary drivers of the upside surprise. (tradingeconomics.com)
