Core PPI in Jan. Rose More Than Expected as Food, Energy Prices Decline
Producer prices during the month of January rose 0.1 percent, a report from the US Labor Department showed Thursday morning. Economists were expecting a steeper rise of 0.4 percent. December's PPI reading fell 0.1 percent.
The index, often considered a good gauge of inflation, rose 0.4 percent when the volatile food and energy sector was stripped out. Economists were expecting a 0.2 percent rise. December core PPI reading rose 0.3 percent. An increase in the price of prescribed drugs led the core reading higher, accounting for about 40 percent of the increase.
Wholesale prices were up 4.1 percent on a year-over-year basis while core prices rose 3 percent. The Street had been anticipating annual increases of 4.1 percent and 2.7 percent in PPI and core PPI, respectively.
The figures point to decreased costs into food and energy spending, two of the most important inputs to inflation.
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The index, often considered a good gauge of inflation, rose 0.4 percent when the volatile food and energy sector was stripped out. Economists were expecting a 0.2 percent rise. December core PPI reading rose 0.3 percent. An increase in the price of prescribed drugs led the core reading higher, accounting for about 40 percent of the increase.
Wholesale prices were up 4.1 percent on a year-over-year basis while core prices rose 3 percent. The Street had been anticipating annual increases of 4.1 percent and 2.7 percent in PPI and core PPI, respectively.
The figures point to decreased costs into food and energy spending, two of the most important inputs to inflation.
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