The monthly PPI rate of 0.5% and annual PPI rate of 2.9% in January in the United States were higher than expected

The US Producer Price Index (PPI) recorded a monthly rate of 0.5% in January, higher than the expected 0.30%, and the previous value was revised from 0.50% to 0.4%. The PPI annual rate in January was 2.9%, also higher than the expected 2.60%, compared to the previous value of 3.00%. AI interpretation: Producer Price Index (PPI) data exceeded market expectations, indicating that inflationary pressures still exist. This result will increase market expectations for future interest rate hikes by the Federal Reserve, especially against the backdrop of inflation not falling significantly as expected. The rise in PPI may also affect consumer prices, further transmitting to CPI and strengthening the sustainability of inflation.