---
source: Bureau of Labor Statistics
url: https://www.bls.gov/news.release/archives/ppi_03182026.htm
document_type: html
date_retrieved: 2026-03-18
period: February 2026
parent_publication: Producer Price Index (Final Demand)
indicators_covered: [Core PPI MoM, Core PPI YoY, PPI Ex Food Energy and Trade MoM, PPI Ex Food Energy and Trade YoY]
---

# Producer Price Index News Release – February 2026

**Release Date:** March 18, 2026, 12:30 UTC  
**Reference Period:** February 2026  
**Source:** U.S. Bureau of Labor Statistics

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## Executive Summary

Core PPI rose 0.5% MoM and 3.9% YoY, with the year-over-year rate accelerating 30 bps from January's 3.6%. The PPI ex food, energy, and trade services—covering ~68% of final demand—increased 0.5% MoM and 3.5% YoY, indicating sticky underlying producer inflation. Notably, final demand goods posted 1.1% MoM, the sharpest gain since 2023, signaling potential re-acceleration in goods-sector inflation after months of relative stability.

---

## Key Data

### Core Producer Price Index (Final Demand)

| Metric | February 2026 | January 2026 | Forecast |
|--------|--------------|-------------|----------|
| MoM | **+0.5%** | 0.8% | 0.3% |
| YoY | **+3.9%** | 3.6% | 3.7% |

### PPI Ex Food, Energy, Trade Services

| Metric | February 2026 | January 2026 |
|--------|--------------|-------------|
| MoM | **+0.5%** | 0.4% |
| YoY | **+3.5%** | 3.4% |

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## Final Demand Components

**Final Demand All Items:** +0.7% MoM, +3.4% YoY

| Component | MoM | YoY |
|-----------|-----|-----|
| Goods | +1.1% | +2.7% |
| Services | +0.5% | +3.6% |

### Goods Analysis
The 1.1% MoM increase in goods represents the strongest monthly advance since 2023, driven by food cost momentum. The 2.7% YoY rate trails overall inflation measures, reflecting earlier commodity price disinflation through 2025. This reacceleration warrants monitoring for potential shift in inflationary pressure from services back to goods.

### Services Analysis
- **Total:** +0.5% MoM, +3.6% YoY
- **Consumer Services (ex trade/transport):** +0.7% MoM, +3.5% YoY  
- **Government Services (ex capital):** +0.5% MoM, +3.9% YoY
- **Private Capital Services:** +0.9% MoM, +1.4% YoY

Government-purchased services at 3.9% YoY signal sustained wage and input cost pressures in public-sector procurement. Consumer services at 3.5% YoY reflect pricing power despite moderated consumer spending.

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## Special Groupings

| Category | MoM | YoY | Notes |
|----------|-----|-----|-------|
| Final Demand Less Foods & Energy | 0.3% | 3.9% | Core inflation metric |
| Final Demand Less Trade Services | 0.4% | 2.9% | Production-level inflation |
| Final Demand Less Government | 0.1% | 3.3% | Private sector |
| Final Demand Goods Less Energy | 0.3% | 3.2% | Non-energy goods |
| Final Demand Services Less Trade | 0.6% | 3.2% | Service inflation ex-margins |

The "ex food, energy, trade services" index at 3.9% YoY exceeds the Fed's 2% target by 190 bps, indicating substantial cumulative pricing pressure.

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## Trend Perspective (Annualized Rates)

| Index | 1-Month | 3-Month | 6-Month |
|-------|---------|---------|---------|
| Core PPI | 0.5% | 0.8% | 1.0% |
| Ex Food/Energy/Trade | 0.5% | 0.6% | 0.5% |
| Final Demand (all) | 0.7% | 0.7% | 0.8% |

The 6-month rates moderating versus 3-month suggests some sequential cooling, yet persistent 0.5–0.7% monthly readings indicate sticky inflation momentum.

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## Coverage and Methodology

The PPI for final demand measures average price changes for producer output in three demand categories:

- **Personal Consumption Goods & Services:** ~60% weight
- **Private Capital Equipment & Services:** ~17% weight  
- **Government-Purchased Goods & Services:** ~23% weight

**Core PPI** excludes food and energy volatility. The "ex food, energy, trade services" variant further excludes wholesale/retail margin inflation, isolating production-level cost pressures covering ~68% of final demand.

All series are seasonally adjusted using 2015 base factors. Year-over-year comparisons use February 2025 as reference.

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## Policy Context

Producer inflation at 3.9% core YoY indicates:

- **Persistent input costs** across goods and services
- **Wage pressures** in service sectors continue to support price increases
- **Goods re-acceleration** after stabilization suggests potential supply-side shifts
- **Pass-through risk** to consumer inflation remains elevated
- **Fed implications:** Data supports higher-for-longer rate expectations, limiting near-term rate-cut prospects

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## Contact & Resources

**BLS PPI Homepage:** https://www.bls.gov/ppi  
**Release Archive:** https://www.bls.gov/news.release/archives/ppi_03182026.htm  
**Phone:** (202) 691-7705  
**Email:** ppi-info@bls.gov

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**Retrieved:** 2026-03-18T17:19:15Z  
**Source:** Bureau of Labor Statistics official release