Wholesale prices jump, adding to inflation woes for U.S. consumers

Wholesale inflation in the U.S. surged again last month, rising 9.7% from a year earlier, in a sign that price pressures remain high at all levels of the economy.

The Labor Department said Tuesday that its Producer Price Index — which measures inflation before it reaches consumers — jumped 1% from December. The year-over-year increase was down from the record 9.8% recorded in both November and December but was well above what economists had been expecting. Excluding volatile food and energy prices, wholesale inflation rose 0.8% from December and 8.3% from January 2021.

"The big picture is that inflation has gained momentum and broadened in the economy," Bill Adams, chief economist for Comerica Bank, said in a note. "The Russia-Ukraine conflict was a factor behind January's increase in prices. Energy prices rose amid fears that the conflict would slow Russian deliveries of natural gas and oil to global markets. But prices of other goods also rose rapidly in January, as did prices of services."