US EditionCore wholesale prices rose 0.8% in January, much more than expected
Core wholesale prices rose 0.8% in January, driven by a 14.4% surge in wholesaling margins, signaling potential upward pressure on consumer inflation, Labor Department data shows.
- The Labor Department said Friday that core wholesale prices excluding food and energy rose 0.8% from December and 3.6% from January 2025, exceeding forecasters' expectations.
- Wholesale measures matter as an early indicator of consumer inflation since some components flow into the Fed's preferred personal consumption expenditures price index, which economists watch closely.
- The data show a mixed composition as wholesale gasoline prices fell 5.5% from December and 15.7% year‑over‑year amid rising services sector and retailer margins.
- These wholesale readings could influence Fed inflation measures as some components feed into the personal consumption expenditures price index and consumer prices rose 2.4% last month.
- Despite modest impacts so far, economists had warned that proposed double‑digit import taxes could push inflation higher, with inflation remaining above the Fed's 2.9% goal, keeping policy risks alive.
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U.S. wholesale prices arrive hotter than expected, up 0.5% from December and 2.9% from a year ago
U.S. wholesale prices came in hotter than expected last month. The Labor Department reported Friday that its producer price index, which measures inflation before it hits consumers, rose…
Inflation report fallout: What economists and strategists say happens next
A hotter-than-expected wholesale inflation report is forcing Wall Street, the Federal Reserve and the White House to revisit a question many hoped was settled: Is the inflation fight really over?
The U.S. producer price index rose 0.5 percent in January and 2.9 percent over the past 12 months, the U.S. Department of Labor reported today. Core inflation, which excludes energy and food prices, was 0.8 percent on a monthly basis and 3.5 percent on an annual basis, exceeding expectations.
The producer price index (PPI) of the United States...
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