Producer Price Index (PPI) just came in at -0.6% which was a more severe price drop than the -0.2% expected by consensus.
“The Producer Price Index for Finished Goods declined 0.6 per cent in February, seasonally adjusted, the U.S. Bureau of labour Statistics reported today. This decrease followed a 1.4-per cent advance in January and a 0.4-per cent increase in December. At the earlier stages of processing, prices received by producers of intermediate goods moved up 0.1 per cent and the crude goods index fell 3.5 per cent. On an unadjusted basis, prices for finished goods advanced 4.4 per cent for the 12 months ended February 2010, their fourth consecutive 12-month increase. (See table A.)”