March 18, 2026
According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) for final demand increased 0.7% in February, seasonally adjusted. This follows a 0.5% rise in January and a 0.4% increase in December 2025. On an unadjusted basis, the index for final demand rose 3.4% over the 12 months ended February, matching the largest 12‑month increase since February 2025.
More than half of February’s overall gain was driven by a 0.5% increase in final demand services, while final demand goods prices rose 1.1%.
Excluding foods, energy, and trade services, the PPI for final demand increased 0.5%, marking the tenth consecutive monthly rise. Over the past year, this index has advanced 3.5%.
Final demand goods
Prices for final demand goods increased 1.1%, the largest rise since August 2023. About 40% of this gain came from a 2.4% jump in food prices. Energy prices rose 2.3%, and goods excluding food and energy increased 0.3%.
A notable driver was a 48.9% surge in prices for fresh and dry vegetables, accounting for more than 20% of the overall goods increase. Other contributors included higher prices for diesel fuel, chicken eggs, gasoline, jet fuel, and tobacco products. Offsetting movements included declines in jewellery, home heating oil, and soft drinks.
Final demand services
The index for final demand services rose 0.5%, marking the third consecutive monthly increase. Nearly three‑fourths of the gain came from services excluding trade, transportation, and warehousing, which rose 0.6%. Trade services increased 0.4%, and transportation and warehousing services rose 0.5%.
A 5.7% jump in traveller accommodation services accounted for about 20% of the overall increase. Additional contributors included gains in food and alcohol wholesaling; securities brokerage and investment services; fuels and lubricants retailing; long‑distance motor carrying; and inpatient care. Declines were recorded in apparel, footwear, and accessories retail margins, as well as gaming receipts (partial) and airline passenger services.
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