Wholesale inflation exceeds expectations due to rising costs in the service sector

(AFP) Wholesale inflation was higher than expected in February due to a rise in utility costs, according to data released Wednesday by the government.

The data predates the start of the war in the Middle East.

The Producer Price Index (PPI), a measure of wholesale inflation, rose 0.7% month over month, the Labor Department reported.

Analysts had expected a more moderate increase of 0.3%.

Compared with the same period a year earlier, the PPI increased 3.4%, the largest advance in a 12-month period since February 2025, the report said.

For the February data, half of the increase was attributed to a 0.5% monthly rise in services costs.

The war-related rise in oil has given rise to fears that inflation will shoot up even higher in the world's largest economy.