China News Service, February 17th, a comprehensive report, according to a report released by the US Bureau of Labor Statistics on the 16th, the producer price index (PPI), which measures the level of wholesale prices, rose by 0.7% month-on-month in January, the largest increase since June 2022. . Economists said it was a setback in the U.S. fight against inflation, further evidence that inflation is sticky and unlikely to fall quickly.
On January 7, local time, customers bought eggs at a supermarket in Millbrae, California, USA.China News AgencyPhoto by reporter Liu Guanguan
The report showed that the U.S. producer price index rose 0.7% in January from December 2022, the largest month-on-month increase since June 2022.
The rebound in supplier commodity prices was driven by higher energy prices, the data showed. The increase in producer prices came amid a 5 percent rise in energy costs but a 1 percent drop in food prices.
While the PPI is not as closely watched as some other measures of inflation, it is a forward-looking indicator that can be used to predict the prices of goods and services that will eventually reach consumers. The latest reports suggest that upward pressure on prices remains high.
The increase in producer prices in January coincided with a 0.5 percent rise in the month in the consumer price index (CPI), which measures the prices consumers pay for goods and services. These indicators suggest that while inflation appears to be subsiding as it ends 2022, it rebounds at the start of the new year.
Economists attributed the rise in inflation in January mostly to some seasonal factors, as well as a pullback from more modest price gains in previous months, although an unseasonably warm winter may also have played a role.
Kurt Rankin, senior economist at PNC Financial Services Group in the United States, said, “January’s PPI report is a setback in the (U.S.) fight against inflation.” He also said, “Today’s producer price increases will translate into tomorrow’s Consumers face rising prices.”
“Both inflation numbers this week suggest that inflation is sticky and the fight is not over,” said Lowingart, head of asset modeling at Morgan Stanley’s Global Investment Office.
“Above all, investors should recognize that inflation may not return to normal levels as quickly as many hope, and more (market) volatility may follow,” he noted.