US producer inflation in February jumps record 10% on annual basis

By Ovunc Kutlu

ANKARA (AA) - US producer prices were up 10% in February on an annual basis, according to Labor Department figures released on Tuesday.

The Producer Price Index (PPI), which measures changes in the price of goods and services from a producer perspective, came in line with market expectations.

The annual gain in producer prices for January was revised upwards from 9.7% to 10%.

On a monthly basis, the PPI rose 0.8% in February from the previous month, coming in lower than market expectations of 0.9%.

Its monthly increase in January, however, was also revised upwards from 1% to 1.2%.

The prices for final demand goods rose 2.4% in February, the largest gain since data were first calculated in December 2009.

Core producer prices, which exclude food, energy, and trade, moved up 0.2% in February compared to the previous month.

Core PPI in February increased 6.6% on an annual basis.

Record high inflation has become a major problem for the American economy, and the Federal Reserve is expected to start taming it with a rate hike of 25 basis points on Wednesday.