US producer inflation in January rises 0.9% annually, 0.3% monthly; both above estimates

By Ovunc Kutlu

ISTANBUL (AA) - US producer inflation in January rose 0.9% annually and 0.3% on a monthly basis, as both figures came above market estimates, according to official figures released on Friday.

The producer price index (PPI), which measures changes in the price of goods and services from a producer perspective, was expected to show an annual gain of 0.6%.

The annual figure for December remained unchanged at a 1% increase.

"The index for final demand services moved up 0.6 percent in January, the largest increase since rising 0.8 percent in July 2023," the Labor Department said in a statement.

"In January, most of the advance is attributable to prices for final demand services less trade, transportation, and warehousing, which climbed 0.8 percent," it added.

On a monthly basis, the PPI increased 0.3% in January, above the market expectation of a 0.1% gain, following a decline of 0.1% in December.

Core producer prices, which exclude food, energy and trade, increased 0.6% in January after rising 0.2% in the month before, also coming higher than estimates of 0.1%.

Core PPI in January increased 2.6% on an annual basis following a gain of 2.6% in December, and higher than expectations of 1.6% as well.