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**# February 2025 PPI Analysis: Stable Wholesale Costs, Gas Decreases, Egg Prices Soar**
**Released:** March 13, 2025, 09:39 AM ET
**Main Points:**
* Egg costs at the wholesale stage increased a considerable 53.6% in February compared to January.
* The general Producer Price Index (PPI) remained constant from month to month, because of a 4.7% reduction in fuel costs.
* Wholesale costs are a primary sign of consumer inflation, but President Trump’s levies are casting a darkness over the forecast for the upcoming months, with the possibility to push costs higher.
**Specifics:**
In February, the index that monitors wholesale costs remained unchanged from January, as lower fuel costs countered a massive rise in the cost of eggs.
Following a modified 0.6% increase in January, the Producer Price Index remained stable in February. The rise in egg costs (53.6%) was balanced by a reduction in fuel costs (-4.7%). Economists surveyed by *The Wall Street Journal* and Dow Jones Newswires had predicted a 0.3% increase.
The information implies that inflationary pressures were easing quicker than anticipated before President Donald Trump started shaking things up in March with a series of levies imposed, promised, and withdrawn on U.S. trading partners. These levies, if enacted, could result in increased costs. Producer costs are regarded as a primary sign of changes in consumer costs, ultimately impacting what consumers spend at the register.
Justin Begley, an economist at Moody’s Analytics, mentioned that the February slowdown corresponds with expectations of easing inflation in the coming months before trade tensions potentially inflate costs. However, the following month’s analysis will be essential to verify whether February’s weakness was an isolated event.
This proof of cooling inflation could impact Federal Reserve officials, who are gathering next week to determine the key federal funds rate, which affects borrowing costs for various kinds of loans.
The Central Bank is attempting a balancing act, maintaining elevated borrowing costs to restrain expenditure and the rise in prices, while concurrently endeavoring to avert a substantial surge in joblessness. The encouraging aspect is that the increase in prices is moderating, affording the Central Bank greater latitude to diminish borrowing costs should the necessity arise. This could potentially be a crucial intervention if Trump’s commerce conflicts commence negatively impacting the employment landscape, as diminished borrowing costs could invigorate the financial system.
Based on the CME Group’s Central Bank Monitoring instrument, monetary sectors are anticipating that the Central Bank will sustain a consistent approach to borrowing costs at their forthcoming strategy gathering. This instrument leverages information derived from commerce in central funds futures to forecast the Central Bank’s course of action concerning borrowing costs.
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