U.S. Producer Prices Drop Show Unexpected Decrease In February

Producer prices in the U.S. unexpectedly decreased in the month of February, according to a report released by the Labor Department on Friday, with the continued decline reflecting sharp drops in prices for food and trade services. 

The Labor Department said its producer price index for final demand fell by 0.5 percent in February after slumping by 0.8 percent in January. 

The continued decrease by the index came as a surprise to economists, who had expected producer prices to climb by about 0.3 percent. 

Core producer prices, which exclude food and energy prices, also dropped 0.5 percent in February after edging down by 0.1 percent in January. Economists had expected core prices to tick up by 0.1 percent.