**MNI 5 Things: February PPI Above-Expected +0.2%, Core +0.2%>

--5 Things We Learned From The February PPI Data

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

Producer Price Index data for February released by the Labor Department 

Wednesday: 

     - The February PPI data shows a 0.2% gain, slightly ahead of the 

0.1% gain expected, while core reading was on target at up 0.2%. 

However, a 0.4% gain for PPI ex. trade services as well as food and 

energy in the second solid reading in a row. As MNI said in a preview of 

the data, there was no clear forecast risk for core PPI based on results 

in recent years. 

     - The personal consumption price measure in the data, which some 

analysts use as a preview measure for the PCE price index, rose 0.2% and 

was up 0.4% ex. food and energy, suggesting consumer inflation was 

somewhat stronger in the month. The CPI was reported up 0.2% for 

February on Tuesday, for both overall and core, as expected. 

     - Energy prices were down 0.5% after a 3.4% jump in January, while 

food prices continued their string of declines, falling 0.4%. The 

volatile trade services component was down 0.2% after a 0.3% January 

increase. 

     - Within the core, there were notable declines for cars and light 

trucks that provided some offset to gains in a number of components. 

     - Year/year prices show some acceleration from January. Overall PPI 

is now up 2.8% y/y vs 2.7% in January, while ex food and energy PPI 

moved up to 2.5% y/y vs 2.2% in January and PPI ex food, energy and 

trade services now 2.7% y/y vs 2.5% in January. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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