The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Business

Wholesale inflation rose 0.6% in February, much more than expected

by admin March 15, 2024
March 15, 2024
Wholesale inflation rose 0.6% in February, much more than expected

Wholesale prices accelerated at a faster-than-expected pace in February, another reminder that inflation remains a troublesome issue for the U.S. economy.

The producer price index, which measures pipeline costs for raw, intermediate and finished goods, jumped 0.6% on the month, the Labor Department’s Bureau of Labor Statistics reported Thursday. That was higher than the 0.3% forecast from Dow Jones and comes after a 0.3% increase in January.

Excluding food and energy, the core PPI accelerated by 0.3%, compared with the estimate for a 0.2% increase. Another measure that also excludes trade services rose 0.4%, compared with the 0.6% gain in January, and was above the estimate for a 0.2% advance.

On a year-over-year basis, the headline index increased 1.6%, the biggest move since September 2023.

The data did little to dent what looks like a positive open on Wall Street. Futures tied to major stock market indexes all were positive, though Treasury yields rose as well.

A busy morning for economic data also showed that retail sales rebounded, up 0.6% on the month, according to Commerce Department data that is adjusted seasonally but not for inflation. The increase helped reverse a downwardly revised 1.1% slump in January, but was still below the estimate for a 0.8% rise.

Also, initial filings for unemployment insurance nudged lower to 209,000 last week, a decrease of 1,000 and below the estimate for 218,000, the Labor Department reported. Continuing claims edged higher to 1.81 million, though the previous week’s count was revised sharply lower.

The market focused on the PPI release, which comes two days after the consumer price index, which measures what consumers pay in the marketplace, showed that inflation was slightly higher than anticipated on a year-over-year basis.

The PPI is considered a leading indicator for inflation as it indicates costs early in the supply chain.

The BLS reported that about two-thirds of the rise in the headline PPI came from a 1.2% surge in goods prices, the biggest increase since August 2023. As with the CPI, the acceleration was traced to energy prices, with saw a 4.4% increase in the final demand measure. Gasoline prices jumped 6.8% at the wholesale level.

Services costs increased 0.3%, boosted by a 3.8% surge in traveler accommodation services.

On the retail sales side, the data indicated that consumers kept ahead of CPI inflation, which increased 0.4% on the month, though sales were still sluggish.

Excluding auto, retail sales rose 0.3%, one-tenth of a percentage point below expectations. Motor vehicle parts and dealers saw an increase of 1.6%, second only to the 2.2% gain for building material and garden centers on the month.

Despite slumping prices, gasoline stations reported an increase of 0.9%. Electronics and appliance sales rose 1.5% while miscellaneous store sales climbed 0.6% and restaurants and bars were up 0.4%.

Retail sales posted a 1.5% gain on a year-over-year basis, below the 3.2% increase in the CPI.

Inflation-related data is being watched closely on Wall Street, ahead of the Federal Reserve’s two-day policy meeting starting next Tuesday.

While the central bank is almost certain to hold its benchmark interest rate in place, markets will be looking for clues about the future of monetary policy. Futures pricing is pointing toward the rate-setting Federal Open Market Committee to start cutting interest rates in June, with three quarter-percentage point decreases expected this year.

At the meeting, policymakers will update their outlooks for rates, economic growth, inflation and unemployment.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Family Dollar to close almost 1,000 stores
next post
Lawmakers blast Biden Gaza port plan as political move to win back progressives

Related Posts

Amazon’s Zoox under investigation by NHTSA after two...

May 14, 2024

Want to bet against Trump Media stock? It’ll...

April 6, 2024

Free cash programs spread as more cities expand...

April 14, 2024

U.S. added 275,000 jobs in February, more than...

March 10, 2024

UnitedHealthcare taps company veteran Tim Noel as new...

January 25, 2025

Panera Brands CEO steps down; CFO to fill...

January 9, 2025

Tariffs or not, a Chinese baby products company...

May 21, 2025

Chipotle says restaurants will give bigger servings after...

July 28, 2024

UnitedHealthcare sued by shareholders over reaction to CEO’s...

May 9, 2025

Starbucks imposes new limits on what baristas can...

April 24, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Apple reveals complex system of App Store fees to avoid E.U. fine of 500 million euros

      June 30, 2025
    • Breakdown of NVDA’s Stock Price and S&P 500: Actionable Technical Insights

      June 30, 2025
    • Thom Tillis announces retirement from Senate after clash with Trump

      June 30, 2025
    • SCOOP: House Republican eyes bid for Thom Tillis Senate seat after Trump attack

      June 30, 2025
    • Dem delay tactic ends, debate begins on Trump’s ‘big, beautiful bill’

      June 30, 2025
    • GOP, Dem senators remain divided over Medicaid after Trump’s ‘big, beautiful bill’ vote

      June 30, 2025

    Categories

    • Business (1,272)
    • Politics (3,873)
    • Stocks (1,477)
    • Uncategorized (45)
    • World News (1,265)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved