U.S. wholesale inflation fell by the most in five years in February, pulled down by declines in the costs of goods such as gasoline and services.
Figures released Thursday by the U.S. Labor Department revealed the producer price index for final demand dropped 0.6% last month, the biggest decline since January 2015, after surging 0.5% in January.
In the 12 months through February, the PPI increased 1.3% after gaining 2.1% in January. Economists had forecast the PPI dipping 0.1% in February and rising 1.8% on a year-on-year basis.
Excluding the volatile food, energy and trade services components, producer prices slipped 0.1%, the first drop since June, after climbing 0.4% in January. The so-called core PPI advanced 1.4% in the 12 months through February after rising 1.5% in January.
The report came on the heels of data on Wednesday showing a surprise rise in consumer prices in February and steady increase in underlying inflation. But the signs of some inflation in the economy are likely short-lived as the coronavirus pandemic suppresses demand for services like transportation, hotel accommodation, entertainment and recreation.
