On March 11, 2026, a customer was shopping at a grocery store in Miami, Florida, USA. US wholesale inflation for February rose significantly more than anticipated, with widespread price increases across business products—particularly energy and food—pushing the inflation rate to its highest level in a year.

Data released on Wednesday by the US Bureau of Labor Statistics showed the Producer Price Index (PPI) increased 0.7% month-over-month, while the year-over-year gain climbed to 3.4%, the highest since February 2025.

According to the average forecast of economists from financial data provider FactSet, wholesale prices were expected to rise only 0.3% month-over-month and hold steady at 2.9% year-over-year.

Food prices surged 2.4% from the previous month, the largest monthly increase in nearly five years; energy prices rose 2.3%, reflecting early market anticipation of conflict in the Middle East.

Core PPI, which excludes food and energy, increased 0.5% month-over-month, with the annual rate climbing to 3.9%, the highest since January 2025.

Economists had projected core PPI would rise 0.2% month-over-month and slow to 3.5% year-over-year.

The Producer Price Index measures average changes in prices received by producers for their goods and services and serves as a key leading indicator of consumer price trends in the coming months.

This monthly report also provides signals for inflation metrics monitored by the Federal Reserve, as several PPI components are incorporated into the calculation of the Personal Consumption Expenditures (PCE) Price Index.