The Bureau of Labor Statistics reported Thursday that wholesale inflation rebounded in January. Producer prices rose more than expected to start the year.
The producer price index (PPI), a measure of the prices that companies get for finished goods in the marketplace, rose 0.7% for the month, the biggest increase since June. Economists surveyed by Dow Jones expected a 0.4% rise after falling 0.2% in December.
Inflation throughout the supply chain increased to start 2023 after declines registered in December. Only one of four supply-chain stages showed month-over-month declines in January, the Bureau of Labor Statistics reported.
Goods inputs for Stage 4 intermediate demand, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, rose 0.6% in January after falling 0.8% in December. Year-over-year Stage 4 demand rose 5.1%.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, was flat in January after falling 4% in December. Overall, year-over-year demand rose 3.8%.
The most significant change came in Stage 2 intermediate demand. Goods inputs for suppliers to Stage 3 suppliers saw prices fall 4% in January after a 1.8% rise in December. Overall, Stage 2 intermediate demand rose just 5% year-over-year.
Finally, goods inputs for Stage 1 demand rose 0.8% in January after a 3% decline in December. Overall, demand rose 4.8% year-over-year.
