Producer Inflation Posts Monthly Acceleration, Slight Annual Deceleration in January

Source: Bureau of Labor Statistics

The annual growth of producer prices posted a slight deceleration in January, but monthly inflation for the month hit the highest in a year.

• Producer prices grew by 9.7% versus the same month in 2021. This is slightly slower than the 9.8% recorded in both November and December 2020.
• Compared with the previous month, producer inflation clocked in at 1.0%, faster than the 0.4% recorded in December.
• The latest monthly inflation reading is the highest since January 2021’s 1.2% and is the same reading seen in April and March last year.
• Annual core producer inflation came in at 6.9%, slightly slower than the 7.0% in both November and December 2021 but faster than the 1.9% in January last year.
• Monthly core producer inflation stood at 0.9%, faster than the 0.4% in December 2021 but slower than the 1.0% in January 2021.
• The major driver in the January increase was hotel outpatient care prices, along with machinery and vehicle wholesaling; apparel, jewelry, footwear, and accessories.
• Declines were recorded in fuels and lubricants retailing, transportation of passengers, and health care.