It’s not just the stuff you buy from store shelves that’s a lot more expensive now—inflation also hit businesses hard in January and it was worse than economists were expecting.
Wholesale prices rose 1% in January, the highest rate since January 2021 and more than double the 0.4% increase economists had expected to see in a Bureau of Labor Statistics report on producer prices Tuesday. The report, which measures the prices that U.S. producers receive for the goods and services they make, hinted that more rapid price increases are coming down the pike for consumers. Tallying up all the increases this year, those producer prices have risen 9.7% since last January, just shy of the 9.8% 12-month gains in December and November, which were the highest in data going back to 2011.
“While these gains failed to overtake November's record-breaking results, this is still podium-worthy, in a bad way,” Jennifer Lee, senior economist at BMO Capital Markets, said in a commentary.
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