US producer prices come in a tad higher than forecast in January

(Sharecast News) - Inflation at the wholesale level in the US came in a tad hotter-than-expected at the start of 2024. According to the US Department of Labor, in seasonally adjusted term, so-called final demand prices increased at a month-on-month pace of 0.4% in January.

That was only one tenth of a percentage point more than forecast by economists.

However, the prior month's rate of increase was revised up from an initial estimate of 0.2% to 0.5%.

Driving the gain were a 1.1% jump in the cost of food and a 1.7% advance in that of gasoline.

On the services side of the equation, prices were up 0.3%, with those for trade only edging up by 0.1%, albeit after a 0.6% gain during the prior month.

Trade prices include retailers' margins.

Headline final demand prices were ahead by 3.5% year-on-year, the same clip as had been observed in December.

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