close video Supercore inflation isn’t providing the economy any relief: Omair Sharif
Inflation Insights founder Omair Sharif and Kaltbaum Capital Management founder Gary Kaltbaum react to the hotter-than-expected January CPI report and what it means for future Fed rate hikes on ‘The Claman Countdown.’
Inflation at the wholesale level rose more than expected in January, the latest sign that painfully high consumer prices could take some time to dissipate.
The Labor Department said Thursday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, rose 0.7% in January from the previous month. On an annual basis, prices are up 6%.
Those figures were both higher than the 5.4% headline figure and 0.4% monthly increase forecast by Refinitiv economists, a worrisome sign for the Federal Reserve as it seeks to cool price gains and tame consumer demand with the most aggressive interest rate hike campaign since the 1980s.
Excluding the more volatile measurements of food and energy, core inflation rose 0.6% for the month – the highest increase since May 2022 and double the Wall Street estimate.
Prices are displayed in a grocery store on February 01, 2023 in New York City. ((Photo by Leonardo Munoz/VIEWpress) / Getty Images)
The data comes just a few days after the Labor Department reported that the consumer price index, which measures the prices paid directly by consumers, rose 0.5% in January, the most in three months. The annual inflation rate also came in at a hotter-than-expected 6.4%.
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Both data releases are considered to be important measurements of inflation, with the PPI believed to be a good leading indicator of inflationary pressures as costs work their way down to consumers.
This is a developing story. Please check back for updates.
