US wholesale inflation comes in hotter than expected in January

Wholesale inflation, as measured by the Producer Price Index, rose more than expected in January, adding to a disappointing inflation picture for the month. The Producer Price Index rose 0.3% last month, resulting in an annual increase of 0.9%. Despite coming in hotter than economists had expected, the annual rate is in line with what was seen during the last quarter of 2023. Core PPI, which excludes the food and energy categories, jumped 0.5% for the month, bringing the yearly increase to 2%, a hotter reading than December’s 1.7%. PPI captures average price shifts before they reach consumers and serves as a potential signal for the prices consumers ultimately end up paying. This story is developing and will be updated.