Producer Prices Increased 0.6% in January

Producer prices rose 0.6% in January, seasonally adjusted, after climbing 0.2% in December, according to the U.S. Bureau of Labor Statistics. Producer prices rose 1.6% for the twelve months ended January 2017.

The index for final demand goods rose 1.0% in January, the largest jump since May 2015. The increase was led by a 4.7% rise in the index for final demand energy. There was a smaller 0.4% increase in the index for final demand goods less food and energy.

Prices for final demand services ticked up 0.3% in January, after rising 0.1% in December. Much of the advance was due to the index for final demand trade services, which increased by 0.9%.

Read the BLS release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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