US Producer Prices Rise 0.5% in January Driven by Higher Services Costs

US producer prices rose 0.5% in January, exceeding expectations due to a significant increase in services costs, including trade and transportation sectors. While goods prices declined 0.3%, driven by lower energy costs, margins for wholesalers and retailers expanded, reflecting ongoing pricing power. Year-on-year, producer prices increased 2.9%, slightly down from December. Analysts note that tariffs continue to affect business costs, though broad-based inflation pressures remain limited amid economic shifts.