13 Feb 2025

Input price inflation rose at faster pace than anticipated in the United States last month, but details under the hood indicated a moderation in some services categories, suggesting that the Federal Reserve’s preferred inflation indicator could slow in month-over-month terms when it is reported next week. Producer prices for final demand climbed 0.4 percent in January relative to the prior month, topping forecasts for a 0.3 percent increase, and rising 3.5 percent on a year-over-year basis, but airline fares and medical care costs declined, putting pressure on the key components that feed through into the core personal consumption expenditures index....