The Bureau of Labor Statistics (BLS) reported Wednesday that wholesale inflation unexpectedly declined in February.
The producer price index (PPI), a measure of the prices that companies get for finished goods in the marketplace, fell 0.1% for the month, down from a 0.3% gain in January, BLS reported. Analysts’ estimates expected a 0.3% increase in February.
Prices fell throughout the supply chain, BLS reported. Only one of the four supply-chain stages did not post a decline in pricing.
Goods inputs for Stage 4 intermediate demand, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, was flat in February after rising 0.8% in January. Year-over-year Stage 4 demand rose 4.8%, down from a 5.1% increase in January.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, fell 0.7% in February after a revised 0.4% decrease in January. Overall, year-over-year demand rose 2.3% in February, down from a 3.8% increase in January.
The most significant data came in State 2 intermediate demand. Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, saw prices fall 3.7% in February after a revised 4.9% drop in January.
Overall, Stage 2 intermediate demand fell 1% year-over-year, the first year-over-year decline in pricing since October 2020. Stage 2 intermediate demand rose 5% year-over-year in January.
Finally, goods inputs for Stage 1 demand fell 0.6% in February after a 0.9% increase in January. Overall, demand rose 3.6% year-over-year, down from a 4.8% increase in January.
