WASHINGTON, Feb 27 (AFP): US producer prices rose more than analysts expected in January, government data showed Friday, as margins for trade services boosted costs.
The producer price index (PPI) climbed 0.5 percent on a month-on-month basis, the Department of Labor said, picking up slightly from December's figure and above the 0.3 percent that economists expected.
From a year ago, PPI was up 2.9 percent, inching down slightly from December's 3.0 percent.
A key factor behind the increase was margins for trade services, while prices for transportation and warehousing services also climbed.
This came as President Donald Trump's sweeping tariffs -- imposed since he returned to the White House last year -- continue to filter through the economy.
While they have not caused a widespread consumer inflation surge, firms have flagged higher business costs and difficulties planning due to policy uncertainty.
Prices for goods dropped 0.3 percent month-on-month on a decline in energy costs, the Labor Department said.
This was "the largest decrease since falling 0.7 percent in March 2025," the report added. But excluding the volatile food and energy sectors, the index for goods advanced 0.7 percent.
US producer inflation higher than expected
FE Team | Published: February 27, 2026 23:57:36
US producer inflation higher than expected
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