WASHINGTON, Feb 28,  (V7N) – US producer prices rose more than analysts expected in January, driven by higher services costs, government data showed Friday.  

The producer price index (PPI) climbed 0.5 percent month-on-month, above economists’ forecast of 0.3 percent, according to the Department of Labor. From a year earlier, PPI was up 2.9 percent, slightly lower than December’s 3.0 percent.  

“Producer prices rose more than expected in January as service-related costs and stronger pricing power push up margins received by wholesalers and retailers,” said Nationwide senior economist Ben Ayers.  

Prices for transportation and warehousing services also increased, while goods prices fell 0.3 percent due to lower energy costs – the largest drop since March 2025. Excluding food and energy, goods prices rose 0.7 percent.  

Ayers noted uneven impacts from tariffs, with metals costs climbing sharply. Steel prices rose 20.7 percent and aluminum 33 percent over the past year.  

President Donald Trump’s sweeping tariffs, imposed since his return to the White House last year, have raised business costs but have not yet triggered widespread consumer inflation.  

END/WD/RH