Bureau of Labor Statistics Reports Producer Price Index for Final Demand Increased 0.5% in February 2021

The Bureau of Labor Statistic reported today, Friday March 12th, 2021, that the Producer Price Index for final demand seasonally adjusted increased 0.5% in February. This rise followed advances of 1.3% in January and 0.3% in December. On an unadjusted basis, the final demand index moved up 2.8% for the 12 months ended in February, the largest increase since rising 3.1% for the 12 months ended October 2018. Most of the February advance in prices for final demand can be traced to a 1.4% rise in the index for final demand goods. Prices for final demand services increased 0.1%. Prices for final demand less foods, energy, and trade services moved up 0.2% in February, the tenth consecutive advance. For the 12 months ended in February, the index for final demand less foods, energy, and trade services rose 2.2%, the largest increase since a 2.4% advance for the 12 months ended May 2019. The index for final demand goods rose 1.4% percent in February, the same as in January. Over two-thirds of the broad-based February increase can be traced to prices for final demand energy, which climbed 6.0%. The indexes for final demand goods less foods and energy and for final demand foods advanced 0.3% and 1.3% respectively.