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flag U.S. wholesale prices rose 0.5% in January, driven by higher service costs and profit margins, signaling continued inflationary pressure despite falling energy and food prices.

flag U.S. Higher service prices, particularly increased profit margins for retailers and wholesalers, drove a 2.9% annual increase in wholesale prices, which increased by 0.5% in January, surpassing forecasts. flag Core inflation pressures are still high, with the core PPI increasing 3.6% yearly, even though the prices of food and energy have decreased. flag The data comes after a recent report that showed consumer inflation was close to the Federal Reserve's 2% target at 2.4% annually. flag However, the continuous increase in wholesale prices indicates that inflationary pressures will continue before goods are purchased by consumers.

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