BlockBeats report: On February 27, the U.S. Bureau of Labor Statistics released data showing that the Producer Price Index (PPI) rose 0.5% month-over-month in January, exceeding the market expectation of 0.3% and also surpassing the 0.4% increase in December 2025; year-over-year, it increased by 2.9%, higher than the expected 2.6%. The data indicates that upstream inflationary pressures remain resilient.
Core PPI, excluding food, energy, and trade services, rose 0.3% month-over-month, in line with expectations, but increased year-over-year to 3.4%, surpassing the market forecast of 3%. Structurally, energy prices declined, with wholesale gasoline prices falling 5.5% month-over-month and 15.7% year-over-year; the main upward drivers were rising wholesale service prices and expanding profit margins among retailers and wholesalers.
The previously reported 1% CPI increased by 2.4% year-over-year, nearing the Fed’s 2% target, but the stronger-than-expected PPI reinforced concerns about persistent inflation, potentially prompting the Fed to remain cautious on its path toward rate cuts.
After the data release, international spot gold slightly retreated from its high before recovering part of the losses. Market participants noted that certain components of the PPI—particularly healthcare and financial services—are likely to feed into the PCE price index, which the Fed monitors more closely; future data releases will serve as an important reference for interest rate expectations.