Prices paid to US producers in January held at nearly a two-year high, another sign of mounting inflation pressures that may keep the Federal Reserve from lowering rates for longer.
Prices paid to producers (PPI) rose by 3.5pc in January from a year earlier, matching the prior month's gain, the Bureau of Labor Statistics said today. Analysts surveyed by Trading Economics had forecast a gain of 3.2pc.
The PPI number follows a higher-than-expected consumer price reading Wednesday which together reinforce the message that the Federal Reserve may hold off longer on rate cuts, especially in the face of potentially inflationary trade conflicts and migrant roundups under the new US administration.
PPI excluding food, energy and trade services rose by 3.4pc in January following a 3.5pc gain in December.
PPI for services rose by 4.1pc in January following a 4pc gain in December. Wholesale prices for energy were flat following a 2pc annual decline the prior month.
PPI for goods rose by 2.3pc in January following a 1.8pc gain in December
On a monthly basis, headline PPI rose by a seasonally adjusted 0.4pc, compared with a 0.5pc gain in December and a 0.2pc increase in November.
Services PPI rose by 0.3pc in December, following a monthly gain of 0.5pc in December and a 0.1pc gain in November.
