The Bureau of Labor Statistics in the United States released data on Friday, February 27, showing that wholesale prices rose faster than expected in January.
The core producer price index, which excludes volatile food and energy prices and is seasonally adjusted, increased by 0.8%, higher than December’s 0.6% and well above the Dow Jones consensus forecast of 0.3%.
Looking at all categories, the overall producer price index rose by 0.5%, also surpassing earlier predictions of 0.3% and up 0.1 percentage points from the previous month.
Year-on-year, core wholesale prices increased by 3.6%, while the overall price index rose by 2.9%. Both figures are significantly higher than the Federal Reserve’s 2% inflation target.
After the report was released, stock index futures saw an expanded decline.
Rising service prices were a key factor driving the overall price increase, with a monthly increase of 0.8%, the highest level since July 2025. In contrast, while core commodity prices increased by 0.7%, commodity prices fell by 0.3%.
More than 20% of the growth in service sector prices came from the profit growth in wholesale business of professional and commercial equipment. In terms of commodities, energy and food prices both declined, while metal prices rose by 4.8%.
Trade service prices increased by 2.5%.
The pipeline pressure indicated by the producer price index data may prompt the Federal Reserve to exercise caution when weighing future interest rate actions. Despite President Trump and other White House officials advocating for rate cuts, the market generally expects the Federal Reserve to stay put before the summer.
(This article referenced CNBC’s report)