According to a March 18th release by the Bureau of Labor Statistics, the Producer Price Index (PPI) increased by 0.5 percent in February, coming in above the 0.3 percent expectation. On a 12-month basis PPI was higher by 3.4 percent. Core PPI inflation (excluding, now very volatile energy and food was at 3.9 percent. Food prices increased by 2.4 percent.
The March 18th PPI followed the Department of Commerce Consumer Price Index CPI) that rose 2.8 percent year-over-year for the headline and 3.1 percent for the Core Index.
The seasonally adjusted one-month changes from January to February among food items included:- processed chicken (1.6 percent); turkeys (0.1 percent); dairy products( 0.6 percent); beef and veal (1.8 percent) with pork the highest at 2.6 percent. Beef and veal increased 13 percent year-over-year with a 7.9 percent increase in the third quarter of 2025, moderating in the fourth quarter but edging up in February.
The situation for eggs reflected wide swings that cannot be attributed to flock losses as a result of HPAI or demand. From December to January, eggs declined by 63.9 percent but from January to February increased by 93.6 percent. The annual February 2025 to February 2026 change was a decline of 80.4 percent.