The US Producer Price Index (PPI) for January increased by 0.5%, surpassing the consensus estimate of 0.3%. This follows a 0.4% rise in December, indicating a slight acceleration in producer-level inflation. The PPI remains above the 50-threshold, signaling continued expansion in wholesale prices. Energy costs contributed significantly to the monthly gain, reflecting ongoing volatility in commodity markets. Compared to the 12-month average, January's reading is notably higher, highlighting persistent inflationary pressures in the US economy. Markets will monitor upcoming consumer inflation data and Federal Reserve communications for further signals on monetary policy. Updated 2/27/26