US producer prices increase solidly in February

[WASHINGTON] US producer prices increased strongly in February, leading to the largest annual gain in nearly 2-1/2 years, but considerable slack in the labour market could make it harder for businesses to pass on the higher costs to consumers.

The producer price index for final demand rose 0.5 per cent last month, the Labor Department said on Friday. That followed a 1.3 per cent jump in January, which was biggest advance since December 2009.

In the 12 months through February, the PPI surged 2.8 per cent, the most since October 2018. The PPI increased 1.7 per cent year-on-year in January. Economists polled by Reuters had forecast the PPI gaining 0.5 per cent in February and jumping 2.7 per cent year-on-year.

REUTERS