Prices at the wholesale level jumped 9.7% from 12 months ago, rising a full 1% in January alone. The 9.7% increase was .1% off the all-time high. Wholesale prices measure the cost to producers of producing goods and services. Increases at the wholesale level typically mean eventually higher prices for consumers as producers price in higher costs.
The increases come amid rising inflation across the economy, with consumer prices running at a 40-year high.
Excluding food, energy and trade services, co-called core PPI increased 0.9% for the month, well ahead of the 0.4% estimate. For the 12-month period, the measure increased 6.9%.
Faced with the prospect of even higher consumer inflation, the Federal Reserve is expected to hike interest rates in March in order to temper economic activity and slow price increases.
