U.S. PPI Surges to 2.9%, Bitcoin Slides Below $67K

Key Insights:

• Services lead January PPI gains, with trade margins and transportation contributing to rising costs.
• Final demand goods fall due to lower energy, gasoline, food, and electricity prices in January.
• Bitcoin falls 2.95% as inflation expectations rise to 3.4%, signaling cautious investor sentiment.

The U.S. Bureau of Labor Statistics said the Producer Price Index for final demand rose 0.5% in January 2026 on a seasonally adjusted basis. Prices had increased 0.4% in December and 0.2% in November. Compared with a year earlier, the index was up 2.9% on an unadjusted basis.

The measure that excludes foods, energy, and trade services increased 0.3% in January. It marked the ninth straight monthly rise. Over the past 12 months, this index advanced 3.4%.

Service Prices Lead the Monthly Gain

Prices for final demand services climbed 0.8% in January, the largest increase since July 2025. Margins for trade services rose 2.5%. Transportation and warehousing services increased 1.0%. Services excluding trade, transportation, and warehousing were flat.

Margins for professional and commercial equipment wholesaling jumped 14.4%. Retail categories such as apparel, health, and beauty products also recorded gains. Prices for system software publishing fell 12.2%. Guestroom rental and apparel wholesaling posted declines.

Energy Weighs on Goods Prices

Final demand goods prices fell 0.3% in January. Energy prices dropped 2.7%, while food prices decreased 1.5%. Goods excluding foods and energy rose 0.7%.

Gasoline prices declined 5.5% and accounted for most of the decrease in goods. Prices for fresh fruits, electric power, and ethanol also moved lower. In contrast, search, detection, navigation, and guidance systems increased 15.5%. Nonferrous metals and pork prices moved higher.

Bitcoin Declines as Inflation Expectations Reach 3.4%

Bitcoin traded at $66,115.41, with a 24-hour trading volume of $48.57 billion. The cryptocurrency fell 2.95% over the past day and 0.99% over the past week.

U.S. one-year inflation expectations measured 3.4% in February. In its release, the Bureau of Labor Statistics said “the response rate for January data reflected in this release is within the normal range,” despite earlier delays tied to the federal government shutdown.

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