Wholesale Prices Slid in February

Washington, DC, March 13, 2015—Wholesale prices fell 0.5% in February, says the U.S. Bureau of Labor Statistics. The unexpected drop represents the fourth consecutive down month, as measured by the Labor Department’s producer price index, which gauges inflation pressures before they reach consumers.

Last month, a decline of 1.6% in food prices was offset by an increase in gas prices of 1.5%. Currently the price of gasoline is on the rise, with the nationwide average at $2.45, up from $2.23 a month ago.

Final demand prices moved down 0.8% in January and 0.2% in December.

On an unadjusted basis, the index for final demand decreased 0.6% for the 12 months ended in February.

In February, about 70% of the decline in final demand prices can be attributed to a 0.5% decrease in the index for final demand services. Prices for final demand goods moved down 0.4%.

Within intermediate demand, the index for processed goods fell 0.6%, the index for unprocessed goods dropped 3.9 %, and prices for services edged up 0.1%.