MARCH 2, 2026 – – JANUARY PRODUCER PRICES RISE
Unexpectedly robust pricing data was released last week by the Labor Department last week. US producer prices rose by 0.5 percent in January, while the core PPI (excluding food and energy) rose by 0.7 percent. The core PPI is at its highest level in over 3.5 years as tariffs were passed down to the consumer through raised prices.
The PPI was up by 0.1 percent from December’s downwardly adjusted 0.4 percent, and above expectations for 0.3 percent. Economists are awaiting the PCE inflation data, which has been delayed due to the government’s shutdown. January figures will be available March 13.
The strong increase in the producer price index has strengthened economists’ views that there will be no interest rate movement before the Fed’s meeting set for June 16-17. Core inflation remains strong, and along with the stable employment market, the recent data is not pushing the Fed to act any sooner.