US final demand prices jump past forecasts in January

Wholesale inflation rose more quickly than expected at the start of 2021 on the back of a jump in energy and services prices.

According to the Department of Labor, in seasonally adjusted terms, so-called final demand prices increased at a month-on-month pace of 1.3% in January and by 1.7% on the year.

Economists had been expecting a 0.4% gain month-on-month and a 0.8% rise year-on-year.

Good prices grew by 1.4% when compared to December, led by a 5.1% increase in the cost of energy.

Excluding food and energy goods, prices were up by a comparatively tame 0.5% versus December.

Services prices meanwhile were up by 1.3% on the month amid across-the-board increases in the prices of trade, transportation and warehousing and for 'other' services.