Reflecting another steep drop in energy prices, the Labor Department released a report on Tuesday showing a modest decline in producer prices in the month of February.
The Labor Department said its producer price index for final demand fell by 0.2 percent in February after inching up by 0.1 percent in January. The modest drop matched economist estimates.
The decrease by the index was primarily due to the steep drop in energy prices, which plunged by 3.4 percent in February after tumbling by 5.0 percent in January.
Gasoline prices showed a particularly sharp decline during the month, plummeting by 15.1 percent.
Excluding food and energy prices, the core producer price index was unchanged in February after climbing by 0.4 percent in the previous month.
Compared to the same month a year ago, producer prices were unchanged in February following a 0.2 percent dip in January.
Meanwhile, the annual rate of core producer price growth accelerated to 1.2 percent from 0.6 percent in the previous month.
The Labor Department is scheduled to release its more closely watched monthly report on consumer price inflation on Wednesday.
Consumer prices are expected to drop by 0.3 percent in February, while core consumer prices are expected to rise by 0.2 percent.
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