US producer prices rose more than analysts expected in January, government data showed Friday, boosted by services 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 revised 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.
“Producer prices rose more than expected in January as service-related costs and stronger pricing power push up margins received by wholesalers and retailers,” said Nationwide senior economist Ben Ayers.
“But a broad-based push higher from tariffs remains absent,” he said.
Besides trade services, prices for transportation and warehousing services also climbed.
This comes 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.
Ayers added that the goods data point to an uneven impact from tariffs, with many firms facing sharp hikes for production costs even though the overall inflation figure is muted.
“Metals climbed further in January with the costs for steel and aluminum products up 20.7 percent and 33 percent, respectively, over the past year,” he said.
