The producer price index for finished goods rose 0.4% during February, the strongest increase since last September. Consensus expectations had been for a 0.5% rise, according to the Action Economics survey. Core pricing power eased. The PPI less food & energy rose 0.2%, half the prior month's gain, and matched expectations.

Higher energy prices were behind the strength in last month's overall PPI increase. The 1.3% (5.8% y/y) gain owed to a 4.3% rise (13.9% y/y) in gasoline prices. Home heating oil costs also were strong posting a 5.3% jump (10.6% y/y). These gains were countered by a 2.8% slide (-9.8% y/y) in residential gas prices. Another decline in food prices countered energy cost strength with a 0.1% dip (+1.6% y/y), the third decline in as many months. Egg prices fell 4.4% (-11.2% y/y) while beef & veal prices dropped 1.2% (+9.4% y/y).

Finished consumer goods prices rose 0.5% (3.7% y/y) versus January. Less food & energy, consumer goods prices rose 0.2% (3.5% y/y). Within the components, men's apparel prices rose 6.3% y/y while women's clothing costs increased 1.7% y/y. Household furniture prices gained 2.7% y/y while appliance prices rose 4.7% during the last twelve months. Passenger car prices rose a moderate 1.2% y/y. Capital equipment prices ticked up 0.1% last month and by 2.2% since last February.

Intermediate goods prices jumped 0.7% were up a firm 3.4% y/y. Energy prices rose 0.3% last month (5.5% y/y) and food prices slipped 0.1% (+4.5% y/y), down for the fourth month in the last five. Core-intermediate prices jumped 1.0% (2.5% y/y). Crude materials prices increased 0.4% last month and 1.6% during the last twelve. Energy prices gained 0.3% (0.8% y/y) while food prices rose 0.6% (3.7% y/y). Prices less food & energy fell 0.3% and were down 2.5% versus last year.

The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectation figure is available in the AS1REPNA database.