The U.S. producer price index decreased a bit in February, according to the Labor Department. The employment services producer price index, which gauges employment activity of placement and temporary worker agencies, decreased 0.1 percent from January. Prices for retailers, wholesalers and factories increased 0.2 percent in January, which may be a reason the index fell.
John Canally, an economist and investment strategist at LPL Financial, said in an interview with Daily Finance the index will have little effect on whether the Federal Reserve will cut back on its bond purchasing stimulus program.
"There is nothing in this report that raises any concerns about inflation," Canally said. "The economy is running too far below capacity for that to happen."
Despite the index dropping in February, it is actually up on a yearly basis. The index had a reading of 130.6 in February. This is a 2.2 percent increase from February 2013, when the index was 127.8.
Companies that are in need of experienced workers can look into hiring temporary workers as a way to help their businesses run more smoothly.
