Feb. 13 (UPI) — U.S. wholesale prices rose by more than expected, according to a Thursday Bureau of Labor Statistics report.
The Producer Price Index rose 0.4% in January while unadjusted PPI increased to 3.5% for the 12 months ended January 2025.
Wholesale Producer Price Index inflation in the United States rose 0.4% in January, according to a Thursday Bureau of Labor Statistics report. Unadjusted, PPI increased to 3.5% for the 12 months ended January 2025. File photo by Terry Schmitt/UPI | License Photo
Core PPI, which excludes food, energy and trade services were up 0.3% in January and 3.4% annually.
Dow Jones economists estimated that PPI and core PPI would both rise 0.3%.
“Over one-third of the January rise in the index for final demand services can be traced to prices for traveler accommodation services, which advanced 5.7%. The indexes for automobile retailing (partial); truck transportation of freight; food and alcohol retailing; apparel, jewelry, footwear, and accessories retailing; and bundled wired telecommunications access services also moved higher.”
Wholesale goods prices were up 0.6% in January, with over half of the PPI inflation increase caused by a 1.7% hike in energy prices.
Diesel fuel prices were up 10.4% and that was a major factor in the overall goods price increase.
Chicken eggs, beef and veal were up while fresh and dry vegetable prices fell 22.3%, according to the BLS.
PPI for January is another data point indicating inflation ticking up, likely keeping the Federal Reserve from making any more interest rate cuts for now.
With Consumer Price Index annual inflation at 3%, expectations for any further interest rate cuts are pushed back to the second half of the year if they come at all in 2025.