January US Producer Price Index, Core PPI Rise Much More Than Expected

08:37 AM EST, 02/27/2026 (MT Newswires) -- The US Producer Price Index rose by 0.5% in January following a 0.4% increase in December, well above a 0.3% gain expected in a survey compiled by Bloomberg.

Energy prices fell by 2.7% in the month, while food prices declined by 1.5%.

After excluding food and energy prices, core PPI rose by 0.8%, well above the 0.3% gain expected and following a 0.6% gain in the previous month.

PPI was up 2.9% year-over-year in January after a 3.0% gain in the previous month while core prices rose by 3.6% after a 3.3% increase.

The monthly producer price index, or PPI, reported by the Bureau of Labor Statistics measures the index level of prices received by producers for products such as energy, food, vehicles, and services. The core measure, excluding the volatile food and energy components, is a measure of underlying inflation.

Sharply higher prices are a sign of demand, but an increase at the producer level without a pass-through to the consumer level would suggest smaller profits at the retail level. As a result, the stock reaction depends on the movements at both levels. Higher inflation is generally a negative for bonds.

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