Final demand PPI rose 0.4% in January, while the core rate, which excludes food and energy, also gained 0.4%, data released by the Bureau of Labor Statistics Thursday showed.

PPI

Final demand goods excluding food and energy rose 0.2%.

The 0.4% gain in core suggests inflation isn’t being pushed merely by a rise in oil prices, which could shake the markets, which have been rattled by any suggestion the Fed may have to raise rates quicker than expected to tamp inflation.

Economists polled by IFR Markets expected the 0.4% gain in PPI but were expecting core to gain just 0.2%.

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