Reply #41: Producer prices unexpectedly jump 1.3%; Core PPI up 0.4% [View All]

Wholesale prices unexpectedly jumped 1.3% in February, the Labor Department reported Thursday.
Increases in the producer price index for finished goods were broad-based. Energy prices rose 3.5%. Food prices rose 1.9%. Capital equipment prices rose 0.3%.

Economists surveyed by MarketWatch were expecting a gain of about 0.6% in the PPI.

Producer prices excluding food and energy were up 0.4%, twice the 0.2% gain in the core PPI that was expected.

The report will keep the pressure on the Federal Reserve to remain vigilant on inflation, even as the economy shows signs of slowing. The PPI is not the Fed's focus; the real issue is what consumer prices do. The PPI measures prices in the production pipeline, not at the retail level.