US producer prices increase more than expected in January

BY Reuters | ECONOMIC | 02/27/26 08:47 AM EST

WASHINGTON, Feb 27 (Reuters) - U.S. producer prices increased more than expected in January, likely as businesses passed on higher costs from import tariffs, suggesting inflation could pick up in the months ahead.

The Producer Price Index for final demand rose 0.5% last month after advancing by a downwardly revised 0.4% in December, the Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast the PPI gaining 0.3% after a previously reported 0.5% increase in December. (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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