US Producer Prices Exceed Forecast in Biggest Gain Since June

US producer prices rebounded in January by more than expected, underscoring persistent inflationary pressures that could push the Federal Reserve to pursue further interest-rate increases in the months ahead.

The producer price index for final demand jumped 0.7% last month, the most since June and bolstered by higher energy costs, according to data out Thursday from the Bureau of Labor Statistics. The PPI climbed 6% from a year earlier.

The median estimates in a Bloomberg survey of economists called for the index to increase 0.4% from a month earlier and 5.4% from January 2022.

Excluding the volatile food and energy components, the so-called core PPI advanced 0.5% in January and 5.4% from a year earlier.

The data come just days after the closely watched consumer price index showed lingering and still-elevated inflationary pressures despite the Fed’s aggressive monetary policy actions over the past year. The PPI, which is a measure of wholesale prices, has generally been cooling in recent months amid improving supply chains, a pullback in many commodities prices, and a tempering in goods demand.