PPI January 2025: Prices increased by 0.4 %

A group of wholesale prices rose more than expected in January, although some of the report details indicated that inflation pressure in the pipelines is abandoned.

the Product price indexAnd that measures what producers get their goods and services, increased by 0.4 % amended seasonal per month, compared to Dow Jones estimated by 0.3 %, according to the Labor Statistics Office on Thursday.

Except for food and energy, the basic product price index increased by 0.3 %, in line with expectations.

Futures in the stock market I moved to the top after the release while the cabinet revenues were sharply lower, despite the high address number than expected. Wall Street strategy was martyred in the details of the report, which suggested a slightly more benign inflation image.

In particular, some healthcare costs have shown relief – care for the doctor, for example, decreased by 0.5 %. Also, local bird trips decreased by 0.3 % and brokerage services prices were from 2.2 %.

Over the past year, the producers’ price index for all elements increased by 3.5 %, before the central bank’s goal. Futures pricing indicates that the market is now not expected to reduce the Federal Reserve Bank of interest rates again to October.

While the versions of the product price index and the consumer consumer are widely martyred, it is not the main that the Federal Reserve uses. Instead, the Central Bank focuses on the Personal Consumption Expenditure Expenses Index, which the Ministry of Commerce will launch later in February. PPI and CPI versions feed in this measure.

Federal Reserve Chair Jerome Powell On Wednesday noticed the Federal Reserve’s focus on the PCE, with the council’s financial services committee informing “We are not there yet.” On inflation, although he was martyred “great progress” so far.

Collecting data together, a 0.22 % increased PCE will appear, a decrease from 0.45 % in December, according to Citigroup estimates. The company said this would push the annual inflation rate to 2.5 %.

The PPI version comes the next day for BLS that Consumer price index It increased by 0.5 % a month, putting the annual inflation rate by 3 % and far from the goal of the Federal Reserve in the long term.

Together, reports pay expectations to reduce the rate up to the second half of the year, although inflation data can be volatile and expectations can change depending on what the subsequent months show.

“The growth of wholesale prices was slightly higher than what was expected for the month of January, and the reading was modified for the month of December,” said Elizabeth Rintre, the major economist at the personal finance site in Nerdwallet. “In other words, inflation at the product level is still high, and that one of the concerns is that this inflation can ultimately move to consumers.”

The December numbers also complicated the inflation image, with a profit position now by 0.5 %, compared to a pre -reported 0.2 % increase.

In January, the prices of producers for services increased by 0.3 %, while the goods increased by 0.6 %. Service prices led 5.7 % in the traveler residence services category, which BLS said about more than a third of the profit.

On the side of the goods, a 10.4 % increase in diesel fuel costs was an important factor. PPI data also reflected the huge leap in egg prices, as farmers destroy millions of chicken to prevent the spread of bird flu. The eggs exploded for fresh use by 44 % per month and rose by 186.4 % from last year.

In other economic news on Thursday, the Ministry of Labor reported this Initial deposits of unemployment demands Little changed for the week ending on February 8. The total claims amounted to 213,000, a decrease of 7,000 from the previous period and near the estimate of 215,000. Continuous claims, which are traveling after a week, decreased to 1.85 million, a decrease of 36,000.