Wholesale prices creep higher in February, PPI shows, but inflation poses little threat

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Wholesale prices creep higher in February, PPI shows, but inflation poses little threat
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PPI data show wholesale prices rising but not enough to pose inflation risk

The numbers: The wholesale cost of U.S. goods and services rose slightly in February, mostly because of higher gasoline prices, but inflation more broadly showed little threat to the economy.

Wholesale inflation has risen a mild 1.9% in the past year. The yearly rate had touched a seven-year high of 3.4% last summer. There wasn’t much sign of inflation in the pipeline, either. The cost of partly finished goods have risen less than 1% in the past year and prices for raw materials are down almost 9% in the same span.Big picture: A sharp decline in gasoline prices and a slowing global economy doused inflation toward the end of 2018. Even the fastest wage increase in the U.S. in 10 years has done little to stoke inflation.

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