--US February producer prices +0.1%; core rate -0.3%
--US Feb producer prices ex-energy -0.1%; energy prices +1.4%
--US February producer gasoline prices -0.8%; heating oil -1.6%
--US Feb producer natural gas prices +3.5%; electricity +1.0%
--US Feb producer passenger car prices -1.5%; light trucks -3.6%
--US Feb producer capital equipment prices -0.3%, computers -1.1%
--US February food producer prices +0.6%; tobacco prices flat
--US February intermediate producer prices -0.1%; core +0.1%
--US February crude producer prices -14.2%; core -2.5%
--US Feb finished goods PPI +4.0% versus year ago; core +1.3%

By Andrew Williams
Washington, March 16 (BridgeNews) U.S. producer prices rose 0.1% in February, exceeding expectations of a 0.1% decline. Continuing increases in natural gas and electricity prices were behind the PPI increase. However, dropping auto and light truck costs helped pull the core rate down 0.3%, undershooting expectations of a 0.1% increase.
* * * The February PPI increase falls far short of the 1.1% rise posted in January. At that time, the PPI was boosted by a surge in energy prices. The core PPI was up 0.7% in January as auto and cigarette prices climbed higher.
For the latest month, energy goods were up 1.4% as electricity costs rose 1.0% and natural gas prices jumped 3.5%. Partially offsetting these increases, gasoline prices declined 0.8%, as did heating oil, which fell 1.6%.
Food prices rose 0.6% in the second month of the year, led by a 13.2% jump in vegetable costs. Chicken and shellfish costs also rose sharply.
Nevertheless, the core PPI contracted as passenger car costs fell 1.5%, the biggest decline since July 1997, and light motor trucks tumbled 3.6%, the biggest plunge since 1982.
Capital equipment costs fell 0.3%, as producer computer costs dropped 1.1%.
WHAT WAS EXPECTED:
The PPI came in at the high end of estimates among private analysts, which ranged from down 0.4% to up 0.2%. The core PPI was beneath expectations, which ranged from down 0.2% to up 0.2%.
CRUDE AND INTERMEDIATE GOODS
Prices of intermediate and crude goods were mostly lower--a possible sign that prices are adjusting in response to lessening demand. Intermediate goods prices fell 0.1%, as the cost of natural gas to electric utilities dropped a record 29.8%. The "core" intermediate goods index, widely watched for signs emerging price pressures, edged up 0.1%. Crude prices plunged 14.2%, as natural gas plunged a record 34.7%. "Core" crude prices dropped 2.5%.
INFLATION IS NOT A FED CONCERN
Today's decline in the core PPI should ease any inflation concerns at the Federal Reserve brought on by last month's unexpected 1.1% gain in producer prices.
Next Tuesday, Fed policy makers are widely expected to cut interest rates as they attempt to maintain a record U.S. business expansion.