The Labor
Department announced on Friday the U.S. producer-price index (PPI) increased
0.3 per cent m-o-m in January 2024, following an unrevised 0.1 per cent m-o-m slip in December 2023. This
marked the strongest monthly gain in PPI since August 2023 (+0.6 per cent
m-o-m).
For the 12
months through January, the PPI rose by 0.9 per cent, easing slightly from an unrevised 1.0 per cent advance in the previous month.
Economists had predicted
the headline PPI would increase 0.1 per cent m-o-m and 0.6 per cent over the
past 12 months.
According to
the report, the January jump in the headline index was due to a 0.6-per cent m-o-m
soar in the index for final demand services. Meanwhile, the index for final
demand goods fell 0.2 per cent m-o-m.
Excluding
volatile prices for food and energy, the PPI rose 0.5 per cent m-o-m, recording
its largest monthly
gain since July 2023 (+0.6 per cent m-o-m), and climbed 2.0 per cent over 12
months. Economists had foreseen advances of 0.1 per
cent m-o-m and 1.6 per cent y-o-y for January. In December, the core PPI showed
a 0.1 per cent m-o-m uptick and a 1.8 per cent y-o-y surge.