The Labor Department reported on Thursday the U.S. producer-price index (PPI) fell 0.6 percent m-o-m in February, following an unrevised 0.5 percent m-o-m gain in January. That was the biggest monthly decline in producer prices since January 2015.

For the 12 months through February, the PPI increased 1.3 percent, decelerating from 2.1 percent in the previous month.

Economists had forecast the headline PPI would decrease 0.1 percent m-o-m but climb 1.8 percent over the past 12 months.

According to the report, 60 percent of the February decline in the final demand index can be traced to a 0.9-percent m-o-m decrease in prices for final demand goods. Meanwhile, the index for final demand services fell 0.3 percent m-o-m.

Excluding volatile prices for food and energy, the PPI dropped 0.3 percent m-o-m and surged 1.4 percent over 12 months. Economists had forecast gains of 0.1 percent m-o-m and 1.7 percent y-o-y, respectively.