Wholesale prices rose more than expected in January, according to a report from the Ministry of Labor on Friday.
The Producer Price Index, which measures the prices received by producers of local goods and services, increased by 0.3% during the month. Economists surveyed by Dow Jones were expecting only a 0.1% increase.
The Producer Price Index excluding food and energy also rose by 0.5%, surpassing expectations of a 0.1% increase. The index excluding food, energy, and trade services jumped by 0.6%, the largest advance in a month since January 2023.
On a 12-month basis, the main Producer Price Index increased by only 0.9%, slightly lower than the 1% level in December. However, excluding food, energy, and trade services, the index rose by 2.6% after a 1.8% increase in December.
The report comes just days after the Consumer Price Index showed that inflation remains persistently high despite the Federal Reserve’s expectations of moderation throughout the year.
The Consumer Price Index increased by 3.1% from last year, down from its level in December but still well above the Federal Reserve’s inflation target of 2%. On a core basis, which is focused on by the Federal Reserve as a long-term inflation gauge, the Consumer Price Index rose by 3.9%.
In addition to concerning inflation readings, the Department of Commerce reported this week that retail sales declined by 0.8% in January, much more than anticipated. (Agencies)
