The BLS released the January PPI report and it came in hotter than expected at 0.3 percent.
The Producer Price Index for final demand increased 0.3 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.1 percent in December 2023 and advanced 0.1 percent in November. (See table A.) On an unadjusted basis, the index for final demand rose 0.9 percent for the 12 months ended January 2024.
source: BLS.gov
Services, a heavy labor dependent category, is leading the charge in inflation while goods have a minor drop. A hot PPI and hot CPI will likely drive interest rates higher in the short term and give the Fed more pause to lower interest rates in the near future.
The next FOMC meeting is March 20 so stay tuned, stay profitable and stay solvent…