Trending Now - US Producer Prices Increase 3.4% Annually, Surpassing Expectations

WHO:

U.S. Labor Department

Federal Reserve policymakers

Economists surveyed by Dow Jones

WHAT:

U.S. wholesale prices rose 0.7% in February 2026.

The producer price index (PPI) increased 3.4% from February 2025, the most since February 2025.

Core wholesale prices (excluding food and energy) rose 0.5% from January 2026 and 3.9% compared to a year earlier.

Food prices increased by 2.4% from January 2026, with vegetable prices surging by 49% and fruit prices by 10%.

The all items index rose faster than the 0.5% pace in January 2026.

Core PPI was up 3.9%, the biggest jump since January 2025.

Energy prices rose by 2.3% in February 2026.

Portfolio management fees increased by 1% in February 2026.

Prices for securities brokerage and related services accelerated by 4.2%.

WHERE:

Washington, D.C. (location of the U.S. Labor Department and Federal Reserve)

WHEN:

February 2026 (month of the reported price increases)

Reports were issued on March 18th, 2026.

WHY:

The increase in wholesale prices was driven partly by a sharp rise in food prices.

The war with Iran has pushed energy prices sharply higher, complicating inflation dynamics.

HOW:

The Bureau of Labor Statistics reported the PPI increase as a seasonally adjusted figure.

Economists had forecasted increases of only 0.3% for both the headline and core measures.

(UPDATED March 18, 2026 15:22 UTC)

In a report released today, the U.S. Labor Department revealed that wholesale prices rose by 0.7% in February 2026, marking the largest increase in the producer price index since February 2025. This surge was largely driven by a significant rise in food prices, which increased by 2.4% from January, with vegetable prices soaring by 49%. Additionally, energy prices climbed by 2.3% amid ongoing tensions from the war with Iran, complicating the overall inflation landscape.