US producer prices rose less than expected in February after the pace of energy price increases slowed, government data showed today, but core producer prices came in a bit above forecast.
The Labor Department said the seasonally adjusted producer price index, a gauge of prices received by farms, factories and refineries, increased by 0.1 per cent last month versus a 0.8 per cent gain in January.
Analysts polled by Reuters had expected a 0.4 per cent advance in the headline index.
Compared with the same period last year producer prices were 1.3 per cent lower, the largest decline since a 1.8 per cent decrease in September 2002.
Core producer prices, which exclude energy and food costs, increased 0.2 per cent in February compared with a forecast for a 0.1 per cent increase. This followed a 0.4 per cent rise in January. Core producer prices were 4.0 per cent higher measured on a year-over-year basis.
A moderating in price increases for energy goods limited the rise in the headline PPI index in February, the data showed. Energy goods rose by 1.3 percent in February after climbing 3.7 per cent the month before.
Capital equipment prices were up only 0.1 per cent after a 0.5 per cent increase in January, while consumer foods prices fell 1.6 per cent.
Reuters