Producer prices in the US rose more than expected in January, reinforcing concerns about the stickiness of inflation that may prompt the Federal Reserve to keep interest rates higher for longer to cool the economy.
The producer price index, often regarded as a leading indicator of where consumer inflation is headed in several months’ time, rose 0.7 per cent last month from December, the US Bureau of Labor Statistics said on Thursday. That surpassed economists’ expectations for a 0.4 per cent increase.
On an annual basis, the PPI, which tracks prices paid to US producers for goods and services, was up 6 per cent from a year ago. That marked a moderation from 6.5 per cent in December, but came in well above market forecasts for 5.4 per cent.