January Sees a 0.4% Increase in Producer Prices

The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) for final demand increased by 0.4% in January, following a 0.5% rise in December 2024 and a 0.2% increase in November.

On an unadjusted basis, the index grew 3.5% over the past 12 months, reflecting continued inflationary pressures in the production sector.

Price Gains Driven by Services and Goods

The January increase was fueled by a 0.3% rise in prices for final demand services and a 0.6% uptick in final demand goods. These broad-based gains indicate a steady climb in input costs across various industries.

Core PPI Continues Its Upward Trend

Excluding volatile categories such as food, energy, and trade services, the core PPI rose by 0.3% in January, following a 0.4% increase in December. Over the 12-month period ending in January, this measure advanced 3.4%, signaling persistent inflation in fundamental production costs.

Source: US Bureau Of Labor Statistics

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