The overall Final Demand Producer Price Index fell 0.5% during February (-0.6% y/y) following an unrevised 0.8% January decline. A 0.2% rise was expected in the Action Economics Forecast Survey. Prices excluding food & energy also were off 0.5% (+1.0% y/y) following a 0.1% slip. A 0.1% rise was expected.

Final demand goods prices (34% of the total index) fell 0.4% (-4.2% y/y), led lower by a 1.6% decline (+0.4% y/y) in food prices. Beef & veal prices decreased 3.2% (+19.1% y/y) but dairy product prices declined 3.0% (-12.8% y/y). Egg prices rose 12.6% (10.4% y/y). Energy prices remained unchanged (-22.4% y/y). Gasoline prices improved 1.5% (-42.7% y/y) and home heating oil prices recovered 9.9% (-39.6% y/y). Electric power costs slipped 0.1% (4.6% y/y) while natural gas prices fell 2.1% (-9.2% y/y). Final demand prices for goods excluding food & energy backpedaled 0.1% (+0.4% y/y) after a 0.2% decline. Passenger car prices fell 0.8% (+0.2% y/y) while furniture prices improved 0.4% (2.0% y/y). Light motor truck prices gained 0.5% (0.3% y/y). Private capital equipment prices improved 0.1% (1.0% y/y) for a second straight month.

Services prices (64% of the total index) were off 0.5% (+1.2% y/y) following a 0.2% decline. Final demand trade services prices fell 1.5% (+2.2% y/y) and retraced two months of 0.5% increase. Prices for transportation of passengers declined 2.7% (+0.3% y/y). Prices for transportation and warehousing of goods fell 1.1% (-0.8% y/y).

Inching up by 0.1% (2.0% y/y) were construction prices for final demand (2% of the total index) after a 0.4% rise.

Intermediate demand prices of processed goods were off 0.6% (-6.4% y/y), the seventh straight monthly decline.

Measured using the old formula, which is being phased out as the headline series, producer prices slipped 0.1% (-3.5% y/y). Consumer food costs moved 1.4% lower (+1.8% y/y), down for the fourth straight month but energy prices rebounded 0.6% (-19.9% y/y). Prices excluding food & energy ticked 0.1% higher (1.5% y/y). Intermediate goods prices declined 0.6% (-6.5% y/y), led lower by a 1.9% shortfall (-3.1% y/y) in food prices while energy costs fell 0.7% (-21.5% y/y). Intermediate goods prices excluding food & energy were off 0.4% (-2.2% y/y). Crude goods prices were pulled 3.9% lower (-25.1% y/y) by a 6.7% drop (-9.2% y/y) in food price. Energy prices gained 0.9% (-45.0% y/y) and core prices fell 5.2% (11.4% y/y).

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