US producer prices and labor market stable

US producer prices were unchanged in February for the first time in seven months, while the number of Americans filing for unemployment benefits fell last week.

US producer prices were unchanged in February for the first time in seven months, while the number of Americans filing for unemployment benefits fell last week, suggesting a stable economy that could allow the Federal Reserve to keep interest rates unchanged on March 19.

US commodity prices increased 0.6% in January 2025. Illustration photo

“ There is no inflation at the factory floor and no worrying layoffs, so there is nothing holding back the economy right now, ” said Christopher Rupkey, chief economist at FWDBONDS.

The US Labor Department said its producer price index (PPI) was unchanged last month – the first time since July – after rising 0.6% in January.

Economists had forecast the PPI would rise 0.3% after a reported 0.4% increase in January. In the 12 months through February, the PPI rose 3.2% after rising 3.7% in January.

Service costs fell 0.2% as profit margins in the machinery and vehicle wholesale sector fell 1.4%, after rising 0.6% in January. Profit margins also fell in the wholesale of food and alcoholic beverages, motor vehicles and parts, and retail of clothing, footwear and accessories.

Portfolio management fees, health care costs, hotel and motel rates, and airfares are all factors that contribute to the calculation of the core PCE price index.

Economists estimate the core PCE price index rose 0.3% in February, with a possible 0.4% increase. Core PCE inflation rose 0.3% in January and is forecast to rise 2.7% year-over-year, after rising 2.6% in January.

The Fed is expected to keep its overnight interest rate unchanged at 4.25-4.50% on March 19, after cutting it by a total of 100 basis points since September.

Financial markets expect the Federal Reserve to cut interest rates again in June, after pausing its easing cycle in January as the economic outlook darkened. The policy rate was previously raised by 5.25 percentage points in 2022-23 to control inflation.

A separate report from the Labor Department showed initial jobless claims in the states fell 2,000 to a seasonally adjusted 220,000 in the week ended March 8.

The jobless claims report also showed the number of people continuing to receive benefits after the first week, a proxy for hiring, fell 27,000 to a seasonally adjusted 1.87 million in the week ended March 1.

The US Labor Department said its producer price index (PPI) was unchanged last month – the first time since July – after rising 0.6% in January.

Source: https://congthuong.vn/gia-san-xuat-va-thi-truong-lao-dong-my-on-dinh-378293.html