Hot, Hot, Hot! Producer Prices Print At 0.7% MoM, 3.4% YoY In February (Hottest Since Jan 2025) What Will Powell And Fed Do?

Producer prices are hot, hot, hot!

Producer prices were higher by 3.4% YoY (notably hitter than the 3.0% expected and up from the 2.9% prior). That is the hottest PPI since January 2025

Source: Bloomberg

More than half of the February rise in prices for final demand can be attributed to a 0.5-percent advance in the index for final demand services. Prices for final demand goods increased 1.1 percent.

Core PPI (ex Food and Energy) also soared (+0.5% MoM) pushing core prices up by 3.9% YoY – the highest since Jan 2025.

Source: Bloomberg

What will Powell and The Fed do??