One key economic meter surprised early Wednesday, indicating that wholesale inflation rose ahead of expectations.
The U.S. Bureau of Labor Statistics announced its Producer Price Index for final demand advanced 0.5%in January, as prices for final demand services rose 0.7% and the index for final demand goods inched up 0.1%. The final demand index increased 2.1% for the 12 months ended in January.
The bureau also noted that prices for final demand less foods, energy, and trade services advanced 0.4% in January, the largest increase since a 0.4% rise in April 2019. For the 12 months ended in January, the index for final demand less foods, energy, and trade services moved up 1.5%.
Economists had forecast the PPI gaining 0.1% in January and rising 1.6% on a year-on-year basis.
Excluding the volatile food, energy and trade services components, producer prices increased 0.4%, the most since April, after rising 0.2% in December. The so-called core PPI increased 1.5% in the 12 months through January, matching December’s rise.
