U.S. wholesale inflation unexpectedly rose in January as margins for wholesale machinery and equipment increased, but lower energy prices and a strong dollar continue to keep inflation in check.
The U.S. Labor Department said on Wednesday its producer price index edged up 0.1% after slipping 0.2% in December. In the 12 months through January, the PPI decreased 0.2% after declining 1% in December.
Economists had forecast the PPI dropping 0.2% last month and falling 0.6% from a year ago.
There were also increases in prices of securities brokerage and dealing, loan services, apparel, footwear and accessories retailing, as well as fuels and lubricants retailing.
Despite the rise in the cost of services last month, lower oil prices and a strong dollar continue to pressure wholesale prices, which is contributing to holding inflation well below the Federal Reserve's 2% target.
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