"January Wholesale Inflation Surges, Complicating Matters for Fed"
The Producer Price Index (PPI) rose 0.3% in January, with an annual increase of 0.9%, driven by price hikes among service providers. Despite exceeding economists' expectations, the annual increase is in line with the last quarter of 2023 and remains below pre-pandemic levels. Goods producer prices fell, while food producer prices dropped for the second month in a row. The latest avian flu outbreak caused wild price swings for eggs, but economists believe it won't be as severe as in 2022. Core PPI, excluding food and energy, jumped 0.5% for the month, indicating potential effects from broader geopolitical disruptions. The warmer-than-expected PPI data, along with the latest Consumer Price Index, is unlikely to alter the Federal Reserve's intended path for interest rate cuts this year.
- January wholesale inflation saw biggest monthly increase since August CNN
- January wholesale prices rise more than expected, another sign of persistent inflation CNBC
- Producer prices and consumer prices both came in hot in January The Hill
- US Core PCE Seen Rising With Stock Rally Boosting Fed-Favored Inflation Measure Bloomberg
- PPI Inflation Report Comes in Hot, Complicates Matters for Fed Barron's
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