Wholesale Inflation Rose More Than Expected in January

The Producer Price Index (PPI) rose 0.7% last month, well above forecasts of 0.4%

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published February 16, 2023
Manager and supervisor taking inventory in warehouse

Getty Images

Wholesale inflation jumped more than expected last month, driven higher by rising prices for energy.

The Labor Department’s Producer Price Index (PPI) rose 0.7%, well above economists' forecasts of 0.4%, after declining 0.2% in December. The year-over-year increase was 6%, down from 6.5% in December but well above projections of 5.4%.

The PPI excluding foods, energy, and trade services was up 0.6%, the largest monthly rise since March 2022, and also above economists' forecasts. The annual rate was 4.5% higher.

Cost of Goods Jumps

Final demand prices for goods advanced 1.2%, the most in seven months, led by a 5% gain in energy costs. Almost a third of the overall change in goods prices was attributable to a 6.2% spike in the cost of gasoline. Food prices dropped 1%, with fresh and dry vegetables prices plunging 35.5%.

Final demand prices for services increased 0.4%, the same as the month before. The department indicated a major factor behind the rise was the index for hospital outpatient care, which was up 1.4%.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Bureau of Labor Statistics (BLS). "Producer Price Indexes—January 2023."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description