The US Producer Price Index (PPI) rose 0.5% month-on-month in January, exceeding market expectations.
The Bureau of Labor Statistics reported on the 27th (local time) that January PPI increased 0.5% from the previous month, surpassing the market forecast of 0.3%. Final demand services prices climbed 0.8% month-on-month, driving the overall index higher.
The year-on-year increase reached 2.9%, also exceeding market expectations of 2.6%.
However, core PPI—which excludes volatile energy, food, and trade prices—rose 0.3% month-on-month, falling short of the expert forecast of 0.4%. Core PPI increased 3.4% year-on-year.
PPI is reflected in final consumer goods prices with a time lag and is considered a leading indicator of consumer prices. It is also incorporated into the Personal Consumption Expenditures (PCE) price index, which the Federal Reserve uses as a key inflation measure.