US producer prices rose by a surprisingly hot 3.4% last month, the most in a year

WASHINGTON (AP) — U.S. wholesale prices came in hotter than expected in February.

The Labor Department reported Wednesday that its producer price index — which measures inflation before it hits consumers — rose 0.7% from January, and 3.4% from February 2025. The year-over-year increase was the most since February 2025.

The gains, driven partly by an sharp increase in food prices from January to February, were bigger than economists had forecast, and they occurred before the war with Iran pushed energy prices sharply higher.