US Wholesale Inflation Remained Tame In February

Line workers begin installing the interior and electronics on the flex line at Nissan Motor Co's automobile manufacturing plant in Smyrna, Tennessee, August 23, 2018.

William DeShazer | Reuters

Line workers begin installing the interior and electronics on the flex line at Nissan Motor Co's automobile manufacturing plant in Smyrna, Tennessee, August 23, 2018.

U.S. wholesale prices barely increased last month after falling for three straight months, a sign there is little inflation pressure in the economy.

The Labor Department says the producer price index — which measures price changes before they reach the consumer — rose 0.1 percent in February. It slipped 0.1 percent in January. Excluding volatile food and energy costs, core producer prices also rose 0.1 percent. Wholesale prices increased 1.9 percent from a year earlier, and core prices rose 2.5 percent.

Despite an unemployment rate near a five-decade low and faster wage growth, inflation is tame. The Consumer Price Index, released Tuesday, increased just 1.5 percent in February from a year ago. Mild inflation is a major reason the Federal Reserve has paused its interest rate hikes.

Get the market reaction here.

This story is developing. Please check back for updates.

RECENT NEWS

Stocks Rise After Better-than-expected Jobs Report To Close Out Winning Week

Stocks rose on Thursday following a better-than-expected U.S. jobs report as the economy tries to recover from the coron... Read more

Record Jobs Gain Of 4.8 Million In June Smashes Expectations; Unemployment Rate Falls To 11.1%

Another big contributor to the decline of the jobless rate was a plunge in those on temporary layoff. That total fell by... Read more

17.6 Million Unemployed Americans Probably Won't Return To Their Pre-pandemic Jobs

The share of the workforce currently out of work with no reasonable chance of returning to their jobs is about 11%, or a... Read more

GM, Fiat Chrysler U.S. Auto Sales Tank In Second Quarter As Coronavirus Saps Demand

U.S. vehicle sales in the second quarter for General Motors, Toyota Motor and Fiat Chrysler plunged by more than 30% Read more

Mortgage Demand Falls For The Second Straight Week, Signaling A Potential Slowdown In The Housing Recovery

The surge in mortgage demand from homebuyers over the past two months appears to be waning, even as mortgage rates conti... Read more

Fed's Bullard Warns Of Financial Crisis Risks As Virus Cases Spike, FT Reports

St. Louis Federal Reserve Bank president James Bullard has warned that a growing number of bankruptcies due to the coron... Read more