Input Stories

The Producer Price Index for final demand (also known as wholesale prices) increased 0.4% in January, after rising 0.5% in December. Over the year, producer prices moved up 3.5%, which is the largest increase since the year-over-year gain in February 2023 of 4.7%. Prices for final demand excluding foods, energy and trade services rose 0.3%, after increasing 0.4% in December. Prices for these goods advanced 3.4% from January 2024.

In January, prices for final demand services rose 0.3%, the sixth consecutive increase, while prices for final demand goods grew 0.6%, the fourth increase in a row. More than half of the increase in the index can be attributed to prices for final demand energy, which rose 1.7%, led by a 14.2% increase in liquefied petroleum gas. The index for final demand goods, excluding foods and energy, edged up 0.1%, the same as December.

Processed goods for intermediate demand rose 1.0% in January, the largest increase since February 2024. Two-thirds of the increase could be attributed to a 3.5% boost in the index for processed energy goods. On the other hand, prices for industrial electric power fell 1.2%. Over the year, the index rose 1.0%, the largest 12-month increase since February 2023.

Meanwhile, prices for unprocessed goods for intermediate demand jumped 5.5% in January, the largest increase since May 2022. The rise was driven by a 13.0% boost in energy materials, led by a 14.8% jump in crude petroleum. Unprocessed foodstuffs and feedstuffs rose 0.9%. Prices for unprocessed goods for intermediate demand rose 8.7% from January 2024, the largest increase since December 2022.