- The producer price index, a measure of pipeline costs that producers receive for their products, increased a seasonally adjusted 0.7% on the month. Core PPI was up 0.5%.
- On a 12-month basis, PPI inflation was at 3.4%, the most since February 2025, while core was at 3.9%, according to the BLS.
- Food prices rose 2.4% while energy was up 2.3%. Within food, the index for fresh and dry vegetables soared 48.9%.
Wholesale prices rose sharply in February, providing another sign that inflation continues to percolate even aside from rising energy prices.
The producer price index, a measure of pipeline costs that producers receive for their products, increased a seasonally adjusted 0.7% on the month, the Bureau of Labor Statistics reported Wednesday. Excluding volatile food and energy costs, so-called core PPI increased 0.5%.
Economists surveyed by Dow Jones had been looking for increases of 0.3% for both measures.
CNBC on new bad inflation data: "It's almost the worst of all worlds. I guess stagflation would come close to describing the situation."
— Aaron Rupar (@atrupar.com) March 18, 2026 at 6:07 AM
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“These are some mighty big increases, adding fuel to the political conversation about affordability,” wrote Carl B. Weinberg, the chief economist at High Frequency Economics. “And of course, energy prices will spike higher in the March report, thanks to the war in Iran and the blockade of the Strait of Hormuz.”
You cannot cure stupid:
Admitting you f*cked up is an underrated quality.
— Christopher Webb (@cwebbonline.com) March 18, 2026 at 3:32 AM
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Dow falls 200 points after hot inflation reading, Fed decision looms:
Stocks fell on Wednesday after a hotter-than-expected producer price index reading and as traders awaited the Federal Reserve’s rate policy decision.
The Dow Jones Industrial Average lost 235 points, or 0.5%. The S&P 500 fell 0.4%, as did the Nasdaq Composite
“The hotter than expected number is specific to tariffs,” Todd M. Schoenberger, CIO at CrossCheck Management LLC, said, noting that metals, industrial inputs and manufacturing costs are all seeing higher prices. “This is structural inflation, not temporary, and is likely going to impact monetary policy deep into the third quarter.”
“Add in the hotter energy prices we’ve seen since the Iran War began, which have yet to show in these reports, and Wall Street is bracing for rapidly rising prices that will clearly flow down to the consumer level,” Schoenberger continued.
Out of Touch Rich Guy:
Hassett: "If the war were to be extended, it wouldn't really disrupt the US economy very much at all. It would hurt consumers, and we'd have to think about what we'd have to do about that, but that's really the last of our concerns right now."
— Aaron Rupar (@atrupar.com) March 17, 2026 at 4:53 AM
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