WASHINGTON (VINnews) — Wholesale prices rose more than expected in January, a sign that inflationary pressures may be heating up again, according to government data released Friday.

The Labor Department said its core producer price index — which excludes volatile food and energy costs — climbed 0.8% for the month, well above economists’ expectations and higher than December’s 0.6% increase.

Overall producer prices rose 0.5% in January, also topping forecasts. Compared with a year earlier, core wholesale prices were up 3.6%, while the headline index increased 2.9%. Both remain above the Federal Reserve’s 2% inflation target.

Services prices drove much of the increase, rising 0.8% in the biggest monthly gain since July 2025. Trade services jumped 2.5%, with higher margins for professional and commercial equipment wholesalers accounting for a significant share of the rise.

Goods prices fell 0.3% overall, reflecting declines in energy and food, though core goods prices — which exclude those categories — rose 0.7%. Metals prices increased 4.8%.

The data suggest pipeline price pressures remain in the economy even as policymakers have sought signs that inflation is cooling. President Donald Trump has said inflation has been brought under control, but the latest figures could keep the Federal Reserve cautious as it weighs future interest rate decisions.

Financial markets largely expect the Fed to hold rates steady in the near term, with potential cuts later this year.