Look out: Wholesale price growth in the US came in warm for a third consecutive month in BLS data released Wednesday.

The 0.7% headline PPI print for February was the warmest since July, underscoring the notion that upside inflation risk was building even before the war in Iran pushed up energy costs.

Economists expected a 0.3% readout, which is to say the actual headline more than doubled consensus.

As the figure shows, we’re moving in the wrong direction. The 3.4% YoY gain on the main final demand gauge was the briskest in a year.

Recall that January’s PPI report evidenced considerable tariff pass-through. That appeared to moderate in February, but the services gauge nevertheless posted another meaningful monthly gain.

The core index rose more than expected on a MoM basis, but it was the YoY print there — 3.9% — which really stood out. That’s the quickest in three years.

The silver lining is that the read-across from the component breakdown didn’t appear, at first glance, to presage an even warmer read on core PCE prices (i.e., underlying consumer inflation on the Fed’s preferred gauge) above and beyond the 0.4% consensus has already penciled in.

Bottom line: This wasn’t an encouraging update on the inflation front.