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Producer Prices in the U.S. Exceed Expectations in January

The U.S. Department of Labor released the Producer Price Index (PPI) data for January.

According to the data, the PPI recorded the highest increase in the last five months with a 0.3% monthly rise compared to the previous month. The market expectation was for producer prices to increase by 0.1% on a monthly basis. In December of the previous year, the PPI had decreased by 0.1%.

Producer prices also showed a 0.9% year-on-year increase in January, surpassing market expectations for a 0.6% annual increase in producer inflation for the month. In December, the PPI had increased by 1% on an annual basis.

The core PPI, which excludes volatile food and energy prices, recorded the fastest monthly increase since July 2023 with a 0.5% rise in January. On an annual basis, the core PPI increased by 2%.

The monthly and annual expectations for core producer inflation were anticipated to be 0.1% and 1.6%, respectively, both exceeding market expectations.

In December, core producer prices had decreased by 0.1% on a monthly basis but showed a 1.7% increase on an annual basis.

The PPI provides clues about the prices of inputs used in production, reflecting on final product prices and headline inflation.

The U.S. Federal Reserve monitors all inflation indicators, including the PPI.

source: aa.com.tr / prepared by Melisa Beğiç

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