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 the economy back at the moment, ” said Christopher Rupkey, chief economist at FWDBONDS.

The US Labor Department said the 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 to 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 auto parts, and clothing, footwear and accessories retail sectors.

Portfolio management fees, health care costs, hotel and motel rates, and airfares are 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 likely increase of 0.4%. 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 in the range of 4.25-4.50% on March 19, after having reduced 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 due to a bleaker economic outlook. The policy rate was previously raised by 5.25 percentage points in 2022-2023 to control inflation.

A separate report from the Labor Department showed initial jobless claims in 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 the 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