Bitcoin edged lower on Wednesday following the release of February wholesale data. The Bureau of Labor Statistics reported that the producer price index climbed 0.7% last month, exceeding economists’ expectations of 0.3%.
The annual rate accelerated to 3.4%, matching the highest reading since February 2025 and signaling persistent inflationary pressures at the producer level.
Core PPI, which strips out volatile food, energy, and trade services, increased 0.5% on a monthly basis, down from January’s 0.8% gain but still above the 0.3% consensus estimate. The measure has now risen for ten consecutive months, reflecting sustained cost pressures in the supply chain.
Final demand goods posted their largest monthly increase since August 2023, with food prices climbing 2.4%. Fresh and dry vegetable costs surged 48.9%, accounting for more than a fifth of the overall goods increase. Energy prices also added to the rise, with diesel up 13.9% and final demand energy advancing 2.3%. Intermediate processed energy goods jumped 5.5%, the steepest increase since August 2023.
Services prices rose 0.5% in February, extending gains for a third straight month. Traveler accommodation services led the advance with a 5.7% increase, followed by higher costs in food and alcohol wholesaling, securities and investment advisory fees, and long-distance transport. The services component is now 3.7% higher than a year ago, the fastest annual pace since October 2024.
All in all, the report points to ongoing inflationary pressures across goods and services, with energy and food costs contributing a great deal to monthly gains.
Hotter-than-expected inflation has strengthened the US dollar and lifted Treasury yields, while equity markets have pulled back as investors weigh the likelihood of sustained restrictive monetary policy.
Major currencies have shown mixed performance. Bitcoin has tumbled below $72,500, continuing its recent downtrend as risk sentiment deteriorates.
Gold is struggling after losing support at $5,000 an ounce. Spot gold last traded at $4,883, down more than 2% on the day.
