WASHINGTON (AP) – U.S. producer prices edged down in February as both the cost of energy and food declined. The decline was the fifth drop in the past seven months, underscoring that inflation remains a no-show.
The Labor Department says its Producer Price Index, which measures price pressures before they reach the consumer, declined 0.2 percent in February after a 0.1 percent increase in January. Core inflation, which excludes energy and food, was unchanged in February after a 0.4 percent jump in January. Over the past 12 months, producer prices overall are flat and core prices are up 1.2 percent.
The Federal Reserve, which begins a two-day meeting Tuesday, is expected to leave interest rates unchanged as policymakers watch for evidence that ultra-low inflation has moving closer to the Fed’s 2 percent target.