FX.co ★ U.S. Core PPI Eases to 3.4% in January, Signaling Gradual Cooling in Underlying Producer Inflation

The U.S. Producer Price Index excluding food, energy and transport — a key gauge of underlying pipeline inflation — edged down to 3.4% year-over-year in January 2026, from 3.5% in December 2025. The data, updated on 27 February 2026, indicate a modest but continued easing in core producer price pressures.

Measured on a year-over-year basis, the “actual” January reading compares prices in January 2026 with those in January 2025, while the “previous” figure reflects December 2025 versus December 2024. The slight deceleration suggests that underlying cost pressures for producers are gradually cooling, which could, over time, feed through to consumer prices.

While the move from 3.5% to 3.4% is incremental, it supports the broader narrative of a slow normalization in price dynamics after prior inflationary spikes. Market participants will be watching upcoming PPI releases closely to see whether this trend continues and how it may influence the broader inflation outlook and policy expectations.