US wholesale prices rose 2.9% over the past year
Wholesale prices in the US jumped 2.9% over the past year, with January rising 0.5% from December.
The Producer Price Index (PPI) rose by 0.5% from December—much higher than economists expected—hinting that inflation pressures aren't gone yet.
Services sector drives price spike
Most of this price spike came from the services sector. The year-over-year increase in core prices was the biggest since March 2025.
Meanwhile, goods prices actually dropped a bit thanks to cheaper gasoline, but other goods (excluding food and energy) still crept up.
What does this mean for interest rates?
Rising wholesale prices often lead to higher costs for everyone down the line.
With both PPI and other inflation measures running hotter than predicted, there's growing talk that the Federal Reserve might hold off on cutting interest rates until at least March.
So if you're wondering why things still feel pricey, this is part of the story!