The Labor Department reported on Wednesday the U.S. producer-price index (PPI) rose 1.3 percent m-o-m in January 2021, following an unrevised 0.3 percent m-o-m gain in December 2020. This advance was the largest since the index began in December 2009.

For the 12 months through January, the PPI increased 1.7 percent after an unrevised 0.8 percent advance in the previous month. That was the largest increase since the 12 months ended January 2020.

Economists had forecast the headline PPI would increase 0.4 percent m-o-m last month and 0.9 percent over the past 12 months.

According to the report, two-thirds of the January increase in prices for final demand can be traced to a 1.3-percent m-o-m rise in the index for final demand services. In addition, prices for final demand goods rose 1.4 percent m-o-m.

Excluding volatile prices for food and energy, the PPI went up 1.2 percent m-o-m and jumped 2.0 percent over 12 months. Economists had forecast gains of 0.2 percent m-o-m and 1.1 percent y-o-y.