Partly reflecting a jump in energy prices, the Labor Department released a report on Tuesday showing that U.S. producer prices rose by more than expected in the month of January.
The Labor Department said its producer price index for final demand climbed by 0.6 percent in January after rising by 0.2 percent in December. Economists had expected prices to increase by 0.3 percent.
The bigger than expected increase in producer prices was partly due to the spike in energy prices, which soared by 4.7 percent in January after jumping by 1.8 percent in the previous month.
Excluding food and energy prices, core consumer prices rose by 0.4 percent in January following a 0.1 percent uptick in December. Core prices had been expected to climb by 0.2 percent.
The report said the index for final demand services increased by 0.3 percent in January after edging up by 0.1 percent in December.
The Labor Department said over 80 percent of the January increase can be traced to margins for final demand trade services, which advanced by 0.9 percent.
The index for final demand transportation and warehousing services climbed by 1.1 percent, while prices for final demand services less trade, transportation, and warehousing edged down by 0.1 percent.
Compared to the same month a year ago, producer prices were up by 1.6 percent in January, unchanged from December. The annual rate of growth in core producer prices slowed to 1.2 percent from 1.6 percent.
On Wednesday, the Labor Department is scheduled to release its more closely watched monthly report on consumer price inflation.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News
