American producer prices rose more than expected in January

In January, the producer price index in the United States rose by a seasonally adjusted 0.7 percent, at the highest rate in seven months compared to the previous month, following a 0.2 percent decline in December. For January, the markets expected a monthly growth of 0.4 percent.

In January, the producer price index rose by 6.0 percent on an annual basis, the smallest amount since March 2021. In December, the price index increased by 6.5 percent in the 12-month period. Markets expected annual growth of 5.4 percent by January.

Commodity prices rose 1.2 percent, the biggest increase since last June’s 2.2 percent increase, mainly due to a 6.2 percent increase in gasoline costs. Indices for residential natural gas, diesel, jet fuel, soft drinks and motor vehicles also rose. In contrast, the prices of fresh and dried vegetables decreased by 33.5 percent. Meanwhile, the price of services rose by 0.4 percent, mainly hospital outpatient care, by 1.4 percent.