PPI report January 2025: prices rose 0.4%

An indicator of wholesale prices increased more than expected in January, although some details of the report indicated that the inflation pressures of the pipe are decreasing.

He Producer Price IndexThat measures what producers obtain for their goods and services, increased by 0.4% adjusted seasonally in the month, compared to the estimation of Dow Jones for 0.3%, the Office of Labor Statistics reported Thursday.

Excluding food and energy, the central PPI increased 0.3%, in line with the prognosis.

Securities market futures He moved higher after liberation, while treasure yields were strongly lower, despite the highest holder number than expected. Wall Street strategists cited details of the report that suggested a slightly more benign inflation image.

In particular, some costs related to medical care showed a decrease in medical care, for example, fell 0.5%. In addition, national air rates decreased by 0.3% and brokerage services prices were out of 2.2%.

During the past year, the PPI of all elements increased 3.5%, far ahead of the target of the Central Bank. The futures price indicates that the market now does not expect the FED to reduce its reference interest rate again until October.

Although the producer and consumer price index releases are widely mentioned inflation meters, they are not the main ones that the Fed uses. The Central Bank focuses on the Personal Consumer Expenses Price Index, which the department Commerce will publish later in February. PPI and CPI versions feed on to that extent.

Fed chair Jerome Powell On Wednesday, he pointed out the Fed’s biggest approach to the PCE measure, while telling the Financial Services Committee of the House of Representatives than “We are not there yet” In inflation, although he cited “great progress” made so far.

When gathering the data, the PCE Central measure will probably show an increase of 0.22%, below 0.45% in December, according to Citigroup estimates. That would reduce the annual inflation rate to 2.5%, the firm said.

The launch of PPI arrives the day after the BLS reported that the Consumer Price Index It increased 0.5% in the month, which put the annual inflation rate at 3% and is out of the range of 2% of the Fed.

Together, reports are delaying expectations for a rate cut until the second half of the year, although inflation data can be volatile and the perspective could change depending on what the subsequent months show.

“The growth of wholesale prices was a little higher than expected for January, and December reading was adjusted up,” said Elizabeth Renter, a senior economist from the Nerdwallet personal finance site. “In other words, inflation at the producer level remains high, and a concern is that this inflation could ultimately transmit to consumers.”

The revisions to the December numbers also complicated the image of inflation, and the gain was now put to 0.5%, compared to the increase of 0.2% previously reported.

In January, producer prices for services increased 0.3%, while goods increased 0.6%. The prices of the services were directed by a jump of 5.7% in the category of traveler accommodation services, which BLS represented more than a third of the profit.

On the side of the goods, a 10.4% increase in diesel fuel costs was a significant factor. PPI data also reflected the massive jump in egg prices as farmers destroy millions of chickens to avoid the propagation of avian flu. Eggs for fresh use exploded 44% higher in the month and increased 186.4% compared to the previous year.

In other economic news on Thursday, the Labor Department reported that Initial presentations for unemployment claims Changed little for the week that ended on February 8. Claims totalized 213,000, a 7,000 decrease in the previous period and near the estimate of 215,000. Continuous claims, which were given a week ago, fell to 1.85 million, 36,000 less.