US wholesale inflation surged sharply in February before Iran conflict erupted

MaticHoleFiller · 2026-03-26T04:25:54+00:00

US wholesale inflation exceeded expectations in February, with the Producer Price Index rising 0.7% month-over-month and climbing to 3.4% year-over-year. Food and energy prices surged significantly, with food prices rising 2.4% and energy up 2.3%. Core PPI also exceeded forecasts, suggesting that consumer prices may rise in the future, which will impact the Federal Reserve's inflation policy.

MaticHoleFiller

2026-03-26 04:25:54

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March 11, 2026, Miami, Florida — A customer shops at a grocery store.

U.S. wholesale inflation in February rose far more than expected, with prices across various sectors—especially energy and food—generally increasing, pushing the inflation rate to its highest level in a year.

Data released by the U.S. Bureau of Labor Statistics on Wednesday showed the Producer Price Index (PPI) increased by 0.7% month-over-month, with the year-over-year growth rate rising to 3.4%, the highest since February 2025.

According to economists at financial data provider FactSet, the average forecast was a 0.3% month-over-month increase in wholesale prices, with the annual rate remaining steady at 2.9%.

Food prices surged by 2.4% month-over-month, the largest single-month increase in nearly five years; energy prices rose by 2.3%, reflecting market expectations of Middle East conflicts.

Excluding food and energy, the core PPI increased by 0.5% month-over-month, rising to 3.9% year-over-year, the highest since January 2025.

Economists previously expected the core PPI to increase by 0.2% month-over-month, with the annual rate slowing to 3.5%.

The Producer Price Index measures the average change in prices received by producers for goods and services sold, serving as an important leading indicator of future consumer price trends.

This monthly report also signals inflation indicators that the Federal Reserve is watching closely, as several PPI data points will be incorporated into the calculation of the Personal Consumption Expenditures (PCE) Price Index.

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