U.S. wholesale prices came in hotter than expected last month with progress against inflation appearing to have stalled, further undercutting expectations for lower interest rates this year. Economists and financial markets fear President Donald Trump’s policies will push inflation higher yet.

The producer price index for final demand climbed 0.4% from a month earlier, and that after an upwardly revised 0.5% increase in December, the Bureau of Labor Statistics said Thursday. The data on wholesale prices comes just a day after a consumer price index report showed underlying inflation at its highest in more than a year.

Wholesale Producer Price Index inflation in the United States rose 0.4% in January, according to a Thursday Bureau of Labor Statistics report. Unadjusted, PPI increased to 3.5% for the 12 months ended January 2025.