US producer inflation rises more than expected

The US Producer Price Index (PPI) rose 0.7 percent in January compared to the previous month, above forecasts of 0.4 percent.

The decline in producer prices, which the US Labor Department had previously announced at 0.5 percent for December, was revised to 0.2 percent.

Basic producer prices, which do not reflect food and energy prices, rose 0.5 percent in January, above expectations of 0.3 percent.

The increase in basic producer prices, previously announced at 0.1 percent for December, was revised to 0.3 percent.

On an annual basis, producer prices rose 6 percent in January, above expectations.

IT WAS EXPECTED THAT 5.4 PERCENT

Economists polled by Reuters had forecast the PPI to be 5.4 percent.

The increase in producer prices, which was announced at an annual 6.2 percent in December, was revised to 6.5 percent.

On an annual basis, the core PPI rose 5.4 percent in January, above expectations.

Economists polled by Reuters had forecast it to be 4.9 percent a year. (Reuters)