Customers shopped at HEB grocery store in Austin, Texas on February 12, 2025.
Brandon Bell | Getty Images
The massive wholesale price increase in January suggests that pipeline inflation pressures persist and are likely to keep the Fed from lowering interest rates.
The producer’s price index measures the products producers receive for their goods and services, which increased by 0.4% seasonally to 0.4% this month, while the Dow Jones estimates at 0.3, according to the Bureau of Labor Statistics on Thursday. %.
In addition to food and energy, the core PPI is consistent with the forecast.
The version comes the day after the BLS reported that the consumer price index rose 0.5% this month, bringing annual inflation to 3% and well beyond the Fed’s 2% long-term target.
Meanwhile, these distributions may delay expectations for lower tax rates until the second half of the year, although inflation data may be volatile and the outlook may change based on what is shown in the following months.
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