Food and Energy Prices Rose Substantially in February
The BLS (Bureau of Labor Statistics) released the February PPI (Producer Price Index) numbers earlier this morning.
The Producer Price Index for finished goods increased 1.6% in February (seasonally adjusted), which is the largest such increase since June of 2009 (+1.9%).
According to the press release, prices for finished energy goods and finished consumer foods made up the bulk of the increase in February's PPI number.
Prices for finished energy goods jumped 3.3% in February, which is the fifth straight monthly increase. According to the BLS, a jump in the price of gasoline contributed to over 40% of February's advance. Increases in the indexes for home heating oil and residential electric power also contributed to the jump in prices for finished energy goods.
The big story in February's PPI release was the jump in finished consumer food prices. According to the press release, the index for finished consumer foods jumped 3.9% in February, the largest such increase since November of 1974. The main culprit? Higher prices for fresh and dry vegetables, which surged 48.7% in cost.
Higher meat and dairy prices also helped contribute to the jump in finished consumer food prices in February.
The costs of filling your car with gas, heating your home and feeding your family are rapidly on the rise, and that is very bad news for a nation that is still struggling to recover from a multi-year recession.
Source: BLS.gov - February 2011 Producer Price Index News Release
Filed under: General Knowledge