US Core PPI Unexpectedly Higher to 0.8%
United States core producer inflation (core PPI) rose above expectations in January 2026, reinforcing the narrative that upstream price pressures have not yet fully subsided. Core PPI—which excludes food and energy—rose 0.8% month-on-month, after December's increase was revised to 0.6%. This was the sharpest monthly increase since July 2025.
The increase came primarily from the final demand component (excluding food and energy), which rose 0.7%, higher than 0.4% in December. Annually, core PPI rose 3.6% year-on-year in January, up from 3.3% in December and above market expectations of around 3.0%.
This data has the potential to change the market's reading of the Fed's policy direction: hotter "pipeline" inflation typically raises concerns that production costs will be passed on to consumer prices, potentially narrowing the scope for interest rate cuts—especially if subsequent inflation data doesn't show a consistent cooling. (yds)
Source: Newsmaker.id
