US Wholesale Prices Rise More Than Expected in January

Producer price index up 0.5% from December and 2.9% from a year ago

Published on Feb. 27, 2026

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The U.S. Labor Department reported that the producer price index, which measures inflation before it hits consumers, rose 0.5% in January from the previous month and 2.9% from January 2025. This was higher than the 0.3% monthly increase and 1.6% annual rise that economists had forecast.

Why it matters

The producer price report provides an early indicator of consumer inflation trends, which is closely watched by the Federal Reserve as it considers interest rate policy. Higher-than-expected wholesale inflation could signal that consumer prices may continue to rise at a faster pace than the Fed's 2% target.

The details

Excluding volatile food and energy prices, core wholesale prices rose 0.8% from December and 3.6% from a year earlier - both higher than forecasted. The increase was driven by rising profit margins for retailers and wholesalers, offsetting a decline in energy prices.

  • The producer price data was released on February 27, 2026.

The players

U.S. Labor Department

The federal agency that collects and publishes economic data, including the producer price index.

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The takeaway

The stronger-than-expected rise in wholesale prices suggests that consumer inflation may remain elevated, potentially leading the Federal Reserve to continue raising interest rates to cool the economy and bring inflation under control.