Unprocessed Goods See Largest Yearly Increase Since 2022
The Producer Price Index for final demand (also known as wholesale prices) stayed the same in February, after rising 0.6% in January. Over the year, producer prices moved up 3.2%, coming in lower than expectations. Prices for final demand excluding foods, energy and trade services rose 0.2%, after increasing 0.3% in January. Prices for these goods advanced 3.3% from February 2024.
In February, prices for final demand services declined 0.2%, which was offset by prices for final demand goods growing 0.3%. Two-thirds of the increase in the final demand goods index can be attributed to prices for chicken eggs, which soared 53.6%. Meanwhile, prices for gasoline fell 4.7% over the month. The index for final demand goods, excluding foods and energy, rose 0.4%, up from 0.2% in January.
Processed goods for intermediate demand rose 0.5% in February, down from the 1.0% jump in January. More than 40% of the increase could be attributed to a 0.3% rise in the index for processed materials less foods and energy. Prices for processed foods and feeds and for processed energy goods also advanced, 2.0% and 0.5%, respectively. Over the year, the index rose 0.3%, down from the 0.9% increase in January.
Meanwhile, prices for unprocessed goods for intermediate demand rose 1.3% in February, the third consecutive monthly increase. The rise was driven by a 5.1% boost in prices for unprocessed foodstuffs and feedstuffs. Unprocessed nonfood materials less energy rose 2.2%. Prices for unprocessed goods for intermediate demand surged 10.5% from February 2024, the largest increase since December 2022.