Producer Prices Come in Hot in January On Services Strength

The Producer Price Index (PPI) for final demand rose 0.5% in January on a seasonally adjusted basis, following gains of 0.4% in December 2025 and 0.2% in November, according to the U.S. Bureau of Labor Statistics. 

On an unadjusted basis, final demand prices increased 2.9% over the 12 months ended January 2026. 

The January advance was driven primarily by services, where prices climbed 0.8%. This is the largest increase since moving up 0.9% in July 2025. In contrast, final demand goods prices fell 0.3%, highlighting the ongoing divergence between goods disinflation and more persistent service-sector cost pressures. 

Core pipeline inflation also remained firm. The index for final demand less foods, energy and trade services rose 0.3% in January, marking its ninth consecutive monthly increase. On a year-over-year basis, the core measure is up 3.4%.