Final demand food prices increased by 1.7%, leading to an egg prices by 53.6%. Other items including pork, vegetables and tobacco products also saw high costs. However, energy prices fell 1.2%, with gasoline prices fell 4.7%. Except for food and energy, the final demand goods increased by 0.4%.
In favor of the services, wholesale and retail margin declined by 1.0%, decreasing the index. Machinery and vehicle Tholling saw a decline of 1.4%, with low retail margin in food, apparel and automobile sales. In contrast, prices increased for hospital outpatient and in -post care.
The prices of accessories processed for intermediate demand increased by 0.5% in February, while the impossible goods jumped 1.3%, roughly due to an increase of 5.1% in foods and feedstaff. However, impossible energy material declined by 3.1%, due to a decline of 2.4% in raw petroleum.
Services for intermediate demand continued their bottom trend, declining by 0.2% over the second consecutive month. This decline was attributed to low prices for commercial loans, advertising and real estate fares, although warehousing cost is at high level.
Market Outlook: Slow Inflation Pressure Pressure Fede
In February, the stable PPI suggested the potential softening of inflation pressure, which may later support the expectations for the federal reserve rate cut in the year. While the prices of the goods are firm, the fall in service costs may indicate demand weakening. Traders will closely look at the upcoming inflation figures and will fed commentary for further signals on the policy direction.
