Over the past year, wholesale prices are up 2.1%. Excluding volatile food and energy prices, so-called core producer inflation rose 0.5% in January from December and 1.7% from January 2019. The Labor Department said much of the 0.7% January increase in services prices came from higher markups for clothes, jewelry, shoes and accessories.
Energy prices dropped 0.7% last month, pulled down by a 1.5% decrease in gasoline prices. Food prices rose 0.2% in January. But the price of chicken eggs plummeted 42.4% last month, most in records dating back to 1937.
Last week, the Labor Department reported that consumer prices blipped up 0.2% last month and rose 2.5% over the past year. The Federal Reserve aims to keep annual consumer inflation around 2%.