Headline: PPI rose 0.4 per cent in February, coming in lower than expectations.Core PPI climbed 0.2 per cent in line with estimates.
On an unadjusted basis, the finished goods rose 3.3 per cent for the 12 months ended February 2012.
Energy costs which jumped 1.3 per cent, after falling 0.5 per cent the previous month, weighed on PPI. Gasoline was up 4.3 per cent.
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Consensus: Analysts expect PPI to increase 0.5 per cent month-over-month (mum). Core PPI which excludes food and energy is expected to rise 0.2 per cent mum.
Analysis: PPI is a key indicator of commodity prices in the manufacturing sector which eventually trickle down to the consumer. It measures the average change in prices from the seller’s side.
PPI rebounded 0.1 per cent in January, while core PPI grew 0.4 per cent. Last month inflation was driven by pharmaceuticals, light trucks, and tobacco products.