US producer prices soar most since 2009, inflation fears persist

Inflation remains in focus amid concerns from some analysts that US President Joe Biden’s $1.9 trillion recovery plan could overheat the economy.

United States producer prices increased by the most since 2009 in January as the cost of goods and services surged, suggesting inflation at the factory gate was starting to creep up. The producer price index (PPI) for final demand jumped 1.3 percent last month, the biggest gain since December 2009, when the government revamped the series, the US Department of Labor said on Wednesday. That followed a 0.3 percent rise in December. In the 12 months through January, the PPI accelerated 1.7 percent after rising 0.8 percent in December. A 1.3 percent rise in the prices of services accounted for two-thirds of the increase in the PPI. That was the biggest gain since December 2009 and followed a 0.1 percent drop in December.