Foreign Exchange Market Update

February 27, 2026

United States Producer Prices Climb 0.5% in January

The Labor Department released a report on Friday showing producer prices in the U.S. increased in January. The report stated that the Labor Department's producer price index for final demand increased by 0.5% in January. Additionally, the Labor Department reported that the annual rate of producer price growth decreased to 2.9% in January from 3.0% in December.

The stronger monthly producer price growth largely reflected a continued advance by prices for services, which grew by 0.8% in January after climbing by 0.7% in December. Prices for trade services led the way higher, surging by 2.5%, while prices for transportation and warehousing services jumped by 1.0%, and prices for other services remained unchanged.

The increase in prices for services more than offset a decrease in prices for goods, which fell by 0.3% in January after edging down by 0.1% in January. Energy prices plunged by 2.7% and food prices tumbled by 1.5%, but prices for goods excluding food and energy grew by 0.7%.

The report also stated that core producer prices, which exclude prices for food, energy, and trade services, rose by 0.3% in January, matching the increase seen in December. The annual rate of growth by core producer prices edged down to 3.4% in January from 3.5% in December.

Earlier this month, the Labor Department released a separate report showing consumer prices in the U.S. increased slightly in January. The report said the consumer price index rose by 0.2% in January after climbing by 0.3% in December. The annual rate of growth in consumer prices slowed to 2.4% in January from 2.7% in December.

Meanwhile, the Labor Department said core consumer prices, which exclude food and energy prices, increased by 0.3% in January after rising by 0.2% in December. The annual rate of growth in core consumer prices dipped to 2.5% in January from 2.6% in December. 02/27/2026 - 09:39:00 (RTTNews)

Eurozone

Euro traded at 1.1819 against USD at 9:00 AM PST

Germany's inflation eased in February after rising in the previous month. The CPI logged an annual growth of 1.9% in February, slower than the 2.1% rise seen in February.

Excluding food and energy, core inflation remained stable at 2.5%. Service prices climbed at a steady pace of 3.2%, and food inflation moderated to 1.1% from 2.1%. On the other hand, the decline in energy prices deepened to 1.9% from 1.7%. 
EU harmonized inflation softened to 2.0% in February from 2.1% a month ago. Monthly, consumer prices moved up 0.2%. The harmonized index of consumer prices rose 0.4. 02/27/2026 - 08:57:00 (RTTNews)

France's inflation accelerated to a 5-month high in February after easing to a 5-year low in January, while the economy logged slower growth in the fourth quarter. The CPI rose 1.0% yearly in February, faster than the 0.3% increase in January, which was the lowest inflation since December 2020.

Similarly, EU harmonized inflation climbed to 1.1% in February from 0.4% in the prior month. The rise in CPI inflation was partly due to a less pronounced decline in energy prices due to the base effect on electricity costs. The fall in energy prices softened to 3.0% from 7.6%.

Producer prices in the domestic market fell 2.3% in January from a year ago, after a 1.9% drop in December. Month-on-month, producer price inflation rose to 0.5% from 0.3%. The French economy grew at a slower pace of 0.2% in the fourth quarter. 02/27/2026 - 06:27:00 (RTTNews)
Spain's consumer price inflation held steady in February after easing to a 7-month low in January. The CPI rose 2.3% year-on-year in February, the same as in the previous month. Meanwhile, underlying inflation that excludes prices of unprocessed food and energy rose to an 18-month high of 2.7% from 2.6% in January.

The rise in prices was curbed by a drop in electricity costs, while the slowdown in inflation was hindered by the upward influence of fuels and lubricants for personal vehicles, restaurants, accommodation services, and food and non-alcoholic beverages.

Monthly, consumer prices rebounded 0.4% in February, following a 0.4% fall in January. EU harmonized inflation rose slightly to 2.5% from 2.4% in January. Month-on-month, the harmonized index of consumer prices climbed 0.4%, in contrast to the 0.8% decrease in January. 02/27/2026 - 04:47:00 (RTTNews)