The Producer Price Index (PPI), which measures the costs suppliers charge businesses along with other customers, surged 0.8% on the month-over-month basis by February as consumer demand continues to spur inflation, the U.S. Bls (BLS) announced Tuesday.
The PPI grew 10% on a year-over-year basis by February, the BLS reported Tuesday. Economists surveyed by Dow Jones estimated wholesale prices would increase 0.9% monthly in the latest report.
Tuesday's report represents the very first time the PPI reached a double digits you'll need a yearly basis because the index was made in 2010, CNN reported.
Surging energy and commodity prices led to the growing wholesale prices, according to the BLS. Energy prices soared 8.2% in February from the previous month, while food prices grew 1.9%.
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The core price index, which excludes volatile items like food and energy, surged to a four-decade high of 7.9% in February, the BLS reported, a rise that will add pressure on the Fed to hike rates of interest following its Wednesday meeting.
Meanwhile, the customer Price Index, which measures prices paid by consumers, grew 0.8% in February on a monthly basis and 7.9% on a year-over-year basis, bringing the nation's key indicator to some 40 year high, the BLS reported on March 10.