Economists were expecting wholesale inflation to increase by 0.3%, which would have resulted in a 2.6% annual rate. PPI, which measures the average change in prices that producers receive for their goods and services, is closely watched as a potential bellwether for the prices consumers may see in the months ahead. Trade services leapt 2.5% in January, a potential indication that costs could be passed along to other businesses and consumers. Prices rose 0.8% versus 0.6% in December to bring the annual rate to 3.6%, the highest in 10 months. Other details in Friday’s report further corroborated the idea that President Donald Trump’s steep and sweeping tariffs continued to drive prices higher for US businesses, which in turn eventually leads to higher prices for consumers, Reid said.

Source: CNN February 27, 2026 14:37 UTC