US February 2025 PPI Rises 0.7% Month-on-Month, More Than Double 0.3% Forecast

The U.S. Producer Price Index climbed 0.7% in February 2025 from the prior month, more than double the consensus forecast of 0.3% and marking the largest monthly gain in over a year, U.S. Department of Labor data show. Core PPI, excluding food and energy, rose 0.5% in the same period, driven by a 0.6% increase in final demand services and a 1.2% jump in final demand goods, including higher gasoline, diesel fuel and processed poultry prices. The report attributed elevated input costs to labor, transportation and ongoing global supply chain disruptions, prompting markets to lower implied odds of near-term Federal Reserve rate cuts as Treasury yields climbed. A six-month comparison shows PPI gains of +0.2% in September 2024, +0.4% in October 2024, +0.2% in November 2024, +0.1% in December 2024 and +0.3% in January 2025 before the February 2025 acceleration to +0.7%, with economists warning sustained producer-level pressures could later surface in consumer price measures.