Key Highlights:

• The PPI rose 0.4% in January and 3.5% year-over-year, exceeding expectations.
• Core PPI was up 3.6% annually, above forecasts of 3.3%.
• Bitcoin’s price remained stable, trading around $96,000 despite the data release.

Inflation at the wholesale level disappointed investors and policymakers expecting easing price pressures. The Producer Price Index (PPI) rose 0.4% in January, compared to economist forecasts for 0.3%, marking a rise from 0.2% in December. On a year-over-year basis, the PPI increased 3.5%, surpassing predictions of 3.2% and 3.3% in December.

Core PPI, which excludes food and energy, was also reported higher, with a 0.3% rise in January against forecasts of 0.3% and 0% in December.

With new Trump tariff announcements forthcoming, Bitcoin continues its trading near $96,000. The significance of today’s PPI figures grows in the context of recent CPI data, which was stronger than anticipated. Federal Reserve Chairman Jerome Powell acknowledged ongoing challenges in tackling inflation. After a substantial rate cut late last year, the Fed is showing signs of pausing future monetary easing until clear signs of slowdown appear in the economy and inflation.

Before the PPI data was revealed, markets had only anticipated one rate cut for the entirety of 2025, per the CME Fed Watch Tool.