Explore the latest developments concerning Core wholesale prices.
Core wholesale prices rose 0.8% in January, much more than expected
Wholesale prices rose at a faster-than-expected pace in January, countering hopes that inflation was easing, the Bureau of Labor Statistics reported Friday.
The core producer price index, which excludes volatile food and energy prices, increased a seasonally adjusted 0.8%, more than the 0.6% gain in December and well ahead of the Dow Jones consensus estimate for 0.3%.
On an all-items basis, the headline PPI rose 0.5%, also above the forecast for 0.3% and 0.1 percentage point more than the prior month.
For the full year, core wholesale prices accelerated 3.6%, while the headline index posted a 2.9% gain. Both figures are well ahead of the Federal Reserve's 2% inflation goal and suggest that rising prices are still a factor for the U.S. economy.
Wholesale inflation was hotter than expected in January
The prices businesses pay to each other took a sharp turn higher in January, new data showed Friday, indicating that more tariff-related price increases could be still to come.
The Producer Price Index rose 0.5% last month, a pickup from December’s 0.4% rate, according to the latest data from the Bureau of Labor Statistics. The annual rate of inflation nudged down to 2.9% from 3%.
Economists were expecting wholesale inflation to increase by 0.3%, which would have resulted in a 2.6% annual rate.
US stocks moved sharply lower Friday morning, with investors fearing the hotter-than-expected inflation report could lead the Federal Reserve to keep its rate-cutting cycle on pause. The Dow fell 728 points, or 1.47%. The S&P 500 sank 0.8%, and the tech-heavy Nasdaq slid 0.92%.
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Latest wholesale prices arrive hotter than expected
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The Labor Department reported Friday that its producer price index, which measures inflation before it hits consumers, rose 0.5% from December and 2.9% from January 2025. Economists had forecast a 0.3% increase for the month and 1.6% year over year, according to a survey by the data firm FactSet.
Excluding food and energy prices, which bounce around from month to month, so-called core wholesale prices rose 0.8% from December and 3.6% from January 2025 — both higher than forecasters had expected.
Energy prices were down. Wholesale gasoline prices fell 5.5% from December and plunged 15.7% from a year earlier.
For more detailed information, explore updates concerning Core wholesale prices.
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