The latest Bureau of Labor Statistics PPI (Producer Price Index) report shows that wholesale prices increased at a greater-than-anticipated rate in January, challenging expectations that inflation was slowing.
The core producer price index, excluding volatile food and energy costs, rose by a seasonally adjusted 0.8%, exceeding December’s 0.6% increase and surpassing estimates of 0.3%.
On an all-items basis, headline PPI rose 0.5%, above the forecast of 0.3% and 0.1 percentage point higher than the prior month.
Services prices rose by 0.7% since November, marking the largest increase since July, mainly due to higher profit margins at wholesalers and retailers. In contrast, the prices for goods like appliances and autos remained stable last month and increased by 2.5% compared to the previous year.
For the entire year, core wholesale prices increased by 3.6%, while the overall index rose by 2.9%, both above the Federal Reserve’s 2% inflation target.
The PPI report was released over two weeks late due to the 43-day federal government shutdown last year.
By CEO NA Editorial Staff
