WASHINGTON (AP) — The cost of producing goods and services in the United States rose slightly in January, with higher food prices partly offset by cheaper gas. Overall, inflation remains mild.
The Labor Department said Wednesday that the producer price index, which tracks prices before they reach consumers, rose 0.2 percent in January. That followed a 0.1 percent increase in December and a flat reading in November. In the past year, producer prices have risen just 1.2 percent, below the Federal Reserve's preferred target rate.
Excluding the cost of food, energy and markups by wholesalers and retailers, so-called core prices ticked up just 0.1 percent.
Producer prices remain "rather modest, a sign that underlying inflationary pressures are very modest," Annalisa Piazza, an analyst at Newedge Strategy, said in a note to clients.
January's producer prices are the first to be compiled since the government revamped its index to make it more comprehensive. Producer prices now include services and construction. Before last month, the index tracked only goods.
That change has doubled the producer price index's coverage to include 75 percent of the economy. It is the government's first revamp of the index in 35 years.