March 13, 2025

The Producer Price Index (PPI) for final demand in the U.S. was unchanged in February on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics. Final demand prices had previously risen by 0.6 percent in January and 0.5 percent in December 2024. Over the 12 months ended February 2025, the index for final demand increased by 3.2 percent on an unadjusted basis.

In February, the index for final demand saw a mixed performance, with a 0.3 percent rise in prices for final demand goods offsetting a 0.2 percent decline in the index for final demand services.

Excluding foods, energy, and trade services, the index for final demand rose by 0.2 percent in February, following a 0.3 percent increase in January. Over the past 12 months, this index has advanced by 3.3 percent.

Final demand goods

In February, the index for final demand goods increased by 0.3 percent, marking the fifth consecutive monthly rise. This advance was primarily driven by a 1.7 percent increase in prices for final demand foods. Additionally, the index for final demand goods excluding foods and energy rose by 0.4 percent, while prices for final demand energy fell by 1.2 percent.

A significant contributor to the February increase in prices for final demand goods was a 53.6 percent jump in the index for chicken eggs. Other notable increases were seen in the indexes for pork, fresh and dry vegetables, electric power, tobacco products, and carbon steel scrap. Conversely, prices for gasoline declined by 4.7 percent, and the indexes for processed young chickens and primary basic organic chemicals also decreased.

Final demand services

In February, the index for final demand services fell by 0.2 percent, marking the largest decline since July 2024. This decrease was primarily driven by a 1.0 percent drop in margins for final demand trade services. In contrast, prices for final demand services excluding trade, transportation, and warehousing rose by 0.2 percent, while the index for final demand transportation and warehousing services remained unchanged.

A significant portion of the February decline in prices for final demand services was due to a 1.4 percent decrease in margins for machinery and vehicle wholesaling. Other notable decreases were seen in the indexes for food and alcohol retailing, automobiles and automobile parts retailing, apparel, footwear, and accessories retailing, chemicals and allied products wholesaling, and residential real estate loans (partial). Conversely, prices for inpatient care advanced by 0.8 percent, and the indexes for hospital outpatient care and machinery and equipment parts and supplies wholesaling also increased.

Disclaimer:

Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.