WASHINGTON (Reuters) – U.S. producer prices rose sharply in February, leading to the biggest annual gain in nearly 2-1 / 2 years, but a major labor market strike could make it more difficult for businesses to bring higher costs to consumers.
The producer price index for the final demand rose 0.5% last month, the Labor Department said on Friday. That followed a 1.3% jump in January, the biggest increase since December 2009.
In the 12 months through February, the PPI rose 2.8%, the highest number since October 2018. The PPI increased 1.7% year-on-year in January. Economists surveyed by Reuters had predicted that the PPI would gain 0.5% in February and jump 2.7% year-over-year.
(This story corrects headline to February)
Reciting with Lucia Mutikani; Edited by Alex Richardson