Economic Data and Growth

The Producer Price Index for final demand (also known as wholesale prices) rose 0.5% over the month in January, after prices moved up 0.4% in December. Over the year, producer prices increased 2.9% in January, down from 3.0% in December. Meanwhile, prices for final demand excluding foods, energy and trade services ticked up 0.3% over the month in January after rising the same amount in December. Prices for these goods advanced 3.4% from January 2025.

Within final demand, prices for services jumped 0.8% in January, the largest gain since July, after advancing 0.7% in December. Meanwhile, prices for goods decreased 0.3% in January, after edging down 0.1% in December. Within the final demand services index, margins for professional and commercial equipment wholesaling surged 14.4%, accounting for more than 20% of the January increase. Within the final demand goods index, prices for gasoline fell 5.5%, accounting for nearly 80% of the January decline.

Prices for processed goods for intermediate demand stayed the same in January, consistent with the lack of movement in December. Within the index, prices for nonferrous metals soared 4.8% and 32.9% over the year, while the index for gasoline fell 5.5% and 15.7% year-over-year. Meanwhile, prices for industrial electric power dropped 2.9% from December but increased 3.0% from January 2025. Over the year, the index rose 2.6% after a 3.5% increase in December.

Meanwhile, prices for unprocessed goods for intermediate demand decreased 0.5% in January, after moving up 1.9% in December. The monthly decline was led by a 9.8% drop in raw milk, which plummeted 29.2% over the year. In contrast, prices for nonferrous scrap soared 8.5% in January and 42.3% from January 2025. Over the year, prices for unprocessed goods for intermediate demand decreased 6.1%, the largest 12-month drop since September 2024, after ticking down 0.5% in December.