Investing.com - Producer price inflation in the U.S. rose more than expected in January, while core prices inched up modestly, official data showed on Wednesday.
In a report, the Commerce Department said that producer prices increased by a seasonally adjusted 0.2% last month, above forecasts for a 0.1% gain, after rising 0.1% in December.
Year-over-year, the producer price index rose at an annualized rate of 1.2% in January, in line with expectations and up from 1.1% in the preceding month.
The core producer price index eased up 0.2% last month, above expectations for a 0.1% increase, after rising 0.3% in December.
Core produces prices rose at an annualized rate of 1.3% in January, compared to forecasts for a 1.4% gain and after climbing 1.2% in the preceding month.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Following the release of the data, the U.S. dollar held to gains against the euro, with EUR/USD shedding 0.1% to trade at 1.3745, compared to 1.3749 ahead of the data.
Meanwhile, the outlook for U.S. equity markets remained lower. The Dow Jones Industrial Average futures indicated a loss of 0.2% at the open, S&P 500 futures pointed to a drop of 0.25% and Nasdaq 100 futures indicated a decline of 0.2%.