From January to February, the government’s producer price index fell 0.1%, after a 0.3% rise from December to January, which was revised sharply lower. Compared with a year ago, wholesale prices rose 4.6%, a big drop from the 5.7% annual increase in January.
Excluding volatile food and energy costs, so-called core wholesale prices were unchanged from January to February. The core measure can provide a better read of longer-term inflation trends. Energy prices dropped 0.2%, with the costs of heating oil, natural gas and diesel fuel all declining. Food prices dropped 2.2% from January to February, the third straight decline. That drop suggests that grocery store prices, which have been growing at a slower pace, could ease further in coming months.