Wholesale prices in the U.S. picked up in January, according to the Associated Press, the latest sign that some inflation pressures in the economy remain elevated.
The Labor Department reported today that its producer price index — which tracks inflation before it reaches consumers — rose 0.3% from December to January after having fallen 0.1% from November to December. Measured year over year, producer prices rose by a mild 0.9% in January.
Excluding volatile food and energy costs, “core” wholesale prices rose 0.5%, the most since last July. Compared with a year ago, core prices climbed 2%, up from 1.7% in the previous month.
Some of the January rise in producer prices was driven by measurement quirks. They include an increase in the cost of financial management services, which jumped 5.5% just from December to January. In addition, many companies impose price increases early in the calendar year, which often boosts overall inflation measures in January.
At the same time, though, the costs of hospital care, doctor visits, and hotel stays also jumped last month, a sign that inflation in travel, health care, and other service industries also remains elevated.
