US producer prices little changed in January despite dearer energy

Factory gate prices in the States were little changed at the beginning of 2017 in comparison with the same month one year ago despite a pick-up in energy costs.

The US producer price index increased by 0.6% month-on-month in January, led by a 1.0% jump in goods inflation while the cost of services moved up by 0.3%, according to the Bureau of Labor Statistics.

Economists had penciled in a rise of 0.3% on the month and 1.5% over the year for headline producer prices.

Versus the year ago period, headline producer prices were ahead by 1.6%, unchanged from December.

At the 'core' level, excluding food, energy and trade that is, producer prices rose by 0.2% on the month and 1.6% over the year, with the latter down from a rise 1.7% in the month before.

Excluding just food and energy the year-on-year rate of increases in core producer prices fell back from a 1.6% clip to 1.2%.

Energy prices were up by 4.7% on the month as the cost of food remained unchanged.