US final demand PPI rose +0.5% MoM (vs +0.3% MoM expected) and +2.9% YoY (vs +2.6% YoY expected) in January 2026, led by services price pressures.

• Final demand services increased +0.8% MoM while goods fell -0.3% MoM, showing services were the primary driver of the monthly rise.

• Core PPI excluding food, energy, and trade services rose +0.3% MoM and +3.4% YoY, marking the ninth consecutive monthly increase.

• Processed goods for intermediate demand were unchanged MoM and up +2.6% YoY, as a +0.5% rise in core materials offset declines in energy (-2.0%) and foods (-0.6%).

• Unprocessed goods for intermediate demand fell -0.5% MoM and -6.1% YoY, driven largely by a -3.5% drop in foodstuffs including raw milk (-9.8%).

• Services for intermediate demand increased +0.3% MoM and +2.9% YoY, the fifth straight monthly rise led by trade margins (+1.6%).

• Transportation and warehousing services rose +0.5% MoM while margins for chemicals wholesaling jumped +8.4%, contributing significantly to service inflation.

• Business loan prices fell -7.5% MoM and freight arrangement services declined, offsetting some of the broader services increases.