US producer prices rose 0.5% month-on-month in January 2026, following a downwardly revised 0.4% increase in December and surpassing market expectations of a 0.3% gain. Service prices advanced 0.8%—the largest monthly rise since July—driven primarily by a 14.4% surge in margins for professional and commercial equipment wholesaling. Additional increases were recorded in prices for apparel and footwear, chemicals, bundled wired telecommunications access services, health, beauty, and optical goods retailing, as well as food and alcohol retailing.
In contrast, goods prices fell 0.3%, the steepest decline since March 2025, largely reflecting a 5.5% drop in gasoline prices. Prices also decreased for chicken eggs, electric power, gas fuels, fresh fruits and melons, and ethanol.
On an annual basis, producer prices were up 2.9%, the smallest increase in three months but still above the consensus forecast of 2.6%. Core producer prices, which exclude food and energy, climbed 0.8% on the month—the strongest gain in six months—compared with expectations of a 0.3% rise. Year-on-year, core producer prices increased 3.6%, notably exceeding the projected 3.0%.
