US wholesale inflation comes in hotter than expected

(Sharecast News) - US wholesale inflation picked up at a faster than accepted clip at start of the year, according to the Bureau of Labor Statistics, with producer prices rising more strongly than in the prior two months. Core PPI, which strips out volatile food and energy prices, rose 0.8% in January, up from 0.6% in December and well above the 0.3% economists had pencilled in, while headline PPI increased 0.5%, also topping forecasts for a 0.3% gain and coming in slightly hotter than the prior month.

Over the full year, core wholesale prices were up 3.6%, while the headline index rose 2.9%, both running ahead of the Federal Reserve's 2% inflation target and underscoring persistent price pressures in the US economy.

January's rise was principally driven largely by services, where prices jumped 0.8%, the strongest increase since July 2025. Goods prices fell 0.3%, although core goods rose 0.7%.

Within goods, energy and food prices declined, while metals prices surged 4.8% and trade services prices also climbed 2.5%, adding to the upward pressure on wholesale inflation.





Reporting by Iain Gilbert at Sharecast.com