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MNI BRIEF: No Let-Up In US Factory Gate Inflation

MNI STATE OF PLAY: Inflation Worry Key To BOK Policy Moves
MNI STATE OF PLAY: Inflation Worry Key To BOK Policy Moves
(MNI) Washington

U.S. factory gate inflation accelerated month-on-month in January, with the new year seeing no apparent let up in the costs for industry.

Headline final demand PPI rose 1.0% month-on-month, outpacing expectations for a gain of just o.5% and far in excess of the upwardly revised 0.4% seen in December, the Bureau of Labor Statistics said Tuesday. On an annual basis, headline PPI was unchanged from last month, up 9.7% y/y. Core PPI also beat expectations to the upside, with ex-food and energy up 8.3%.

The data further underlines for policymakers at the Federal Reserve how hot price increases are as they head towards the pivotal March policy meeting.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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