In the previous month, the U.S. producer price index (PPI) rose 0.7% from the prior month, beating market expectations.
The U.S. Department of Labor's Bureau of Labor Statistics said on the 18th (local time) that the February PPI was found to have risen 0.7% from the previous month, exceeding the 0.3% forecast. The year-over-year increase was 3.4%, also above the 3% estimate.
Core PPI, excluding the highly volatile food and energy institutional sectors, rose 0.5% from the prior month, topping the 0.3% forecast but slowing from the 0.8% increase recorded the previous month. The year-over-year growth rate of core PPI was 3.9%, higher than the 3.7% estimate.
PPI is reflected in final consumer goods prices with a certain lag and is regarded as a leading indicator of consumer prices. It is also reflected in the personal consumption expenditures (PCE) price index, which the Federal Reserve uses as a key inflation gauge.
U.S. President Donald Trump wrote on his social media right after the PPI release, "When will the 'too late' Powell cut rates?" With the Federal Reserve holding the Federal Open Market Committee (FOMC) meeting over two days starting the previous day, it appeared aimed at pressuring Fed Chair Jerome Powell to cut interest rates.