Prices jumped one percent in January, far more than expected, data from the Department of Labor showed Tuesday.
The Producer Price Index, which measures what businesses are paid for goods and services, rose by one percent in January, twice what economists were expecting. Compared with January of 2021, the index is up 9.7 percent, down slightly from the 9.8 percent year-over-year gain recorded for December.
Excluding food, energy, and trade services, prices rose 0.4 percent from December. They were up 6.9 percent compared with January of 2021, matching the December gain.
Economists had expected prices to rise by 0.5 percent on a monthly basis and 9.2 percent annually.
December’s inflation was revised higher. Initially reported as a 0.2 percent gain on a monthly basis and 9.7 percent annually, the Department of Labor said on Tuesday that prices in December rose 0.4 percent compared with the prior month and 9.8 percent compared with 12-months earlier.