US producer prices rose 0.7% month-over-month in February 2026, up from 0.5% in January and well above market expectations of 0.3%. This marks the largest monthly increase in producer prices in seven months.
Goods prices surged 1.1%, the steepest gain since August 2023, driven primarily by a 48.9% spike in prices for fresh and dry vegetables. Indexes for diesel fuel, chicken eggs, gasoline, jet fuel, and tobacco products also posted notable increases. In contrast, prices for jewelry and jewelry products declined 4%, and costs for home heating oil and soft drinks also moved lower.
Prices for services rose 0.5%, the smallest increase in three months, though traveler accommodation services advanced 5.7%, making the largest individual contribution to the overall rise in services prices.
The core Producer Price Index (excluding food and energy) climbed 0.5% in February, following a 0.8% increase in January and exceeding the consensus forecast of 0.3%.
On an annual basis, headline producer inflation accelerated to 3.4%, the highest rate in a year, up from 2.9% in January and above expectations that it would hold at 2.9%. Core producer inflation also strengthened, rising to 3.9% year-over-year.
