February U.S. producer prices are still advancing faster than expected, evidence that distributors will have to contend with lasting inflationary pressures well into the first half of the year.

The Bureau of Labor Statistics shared its monthly Producer Price Index report on March 18 — measuring the change in selling prices by domestic producers for their output — which showed that February’s total PPI rose 0.7% month-over-month, following January’s unrevised 0.5% gain and December’s 0.4%. 

The February topline increase was more than double the 0.3% economists had expected, and was the fourth straight month of acceleration.

The Bureau noted that nearly 30% of the overall increase was driven by prices for diesel fuel, which jumped 13.9%.

Excluding volatile food and energy costs, the core PPI index increased by 0.5% MoM — also outpacing expectations of 0.3%, though lower than January’s 0.8% jump.

Year-over-year, total PPI rose by 3.4% (3.0% expected) for its biggest increase in 12 months after January’s 2.9% gain. Core PPI increased 3.9% YoY (3.6-3.7% expected) after January’s 3.6% gain — matching its sharpest annual increase in 3 years.

The Index for final demand goods — the closest measure to consumer prices — increased 1.1% in February after a 0.2% January decline, led by gains of 2.4% and 2.3% in food and energy. Excluding those two factors, core final demand goods prices increased 0.3% in February (+0.7% in Jan.).