US Producer Prices Rise More Than Expected

2026-02-27 13:32 By Joana Taborda 1 min. read

US producer prices increased 0.5% mom in January 2026, following a downwardly revised 0.4% rise in December and above forecasts of 0.3%.

Prices of services increased 0.8%, the most since July, led by a 14.4% jump in margins for professional and commercial equipment wholesaling.

Prices also increased for apparel, footwear; chemicals; bundled wired telecommunications access services; health, beauty, and optical goods retailing; and food and alcohol retailing.

On the other hand, prices for goods were down 0.3%, the largest fall since March 2025, mainly due to a 5.5% drop in gasoline.

Prices for chicken eggs, electric power, gas fuels, fresh fruits and melons, and ethanol also moved lower.

Year-on-year, producer prices went up 2.9%, the least in three months, but above forecasts of 2.6%.

Core producer prices jumped 0.8%, also the most in six months, compared to forecasts of 0.3%.

Year-on-year, core producer prices rose 3.6%, well above forecasts of 3%.



News Stream
US Producer Prices Rise More Than Expected
US producer prices increased 0.5% mom in January 2026, following a downwardly revised 0.4% rise in December and above forecasts of 0.3%. Prices of services increased 0.8%, the most since July, led by a 14.4% jump in margins for professional and commercial equipment wholesaling. Prices also increased for apparel, footwear; chemicals; bundled wired telecommunications access services; health, beauty, and optical goods retailing; and food and alcohol retailing. On the other hand, prices for goods were down 0.3%, the largest fall since March 2025, mainly due to a 5.5% drop in gasoline. Prices for chicken eggs, electric power, gas fuels, fresh fruits and melons, and ethanol also moved lower. Year-on-year, producer prices went up 2.9%, the least in three months, but above forecasts of 2.6%. Core producer prices jumped 0.8%, also the most in six months, compared to forecasts of 0.3%. Year-on-year, core producer prices rose 3.6%, well above forecasts of 3%.
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US Producer Inflation Seen Slowing in January
US producer prices are expected to rise by 0.3% month-over-month in January 2026, after a 0.5% increase in December. Core PPI, which excludes food and energy, is also forecast to increase by 0.3%, compared with a 0.7% jump in the previous month. On an annual basis, headline producer inflation is projected to ease to 2.6% which would be the lowest in seven months, from 3% in both December and November. Core producer inflation is expected to edge down to 3% from 3.3%. Investors will be watching the release closely for signs of tariff-related price pressures, though the data are likely to continue to suggest that such effects remain limited for now.
2026-02-27
US Producer Prices Rise More than Expected
US producer prices rose 0.5% mom in December 2025, the largest gain in three months, accelerating from a 0.2% increase in November and exceeding expectations of 0.2%. Services prices rebounded 0.5% after remaining flat in November, led by a 4.5% rise in margins for machinery and equipment wholesaling. Goods prices were flat following a 0.8% rise in the previous month. Nonferrous metals surged 4.5%, while costs also rose for residential natural gas, motor vehicles, soft drinks, and aircraft and aircraft equipment. In contrast, diesel fuel fell 14.6%, with declines also seen in gasoline, jet fuel, beef and veal, and iron and steel scrap. Core PPI jumped 0.7%, the largest increase since July, after no change in November and above forecasts of 0.2%. On an annual basis, headline producer inflation held steady at 3%, above expectations for a slowdown to 2.7%, while core producer inflation accelerated to 3.3% from 3%, exceeding forecasts of 2.9%.
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