A gauge of wholesale prices rose in January, indicating that pipeline inflation pressures are persisting and likely keeping the Federal Reserve on the sidelines regarding interest rate cuts.

The producer price index, which measures what producers get for their goods and services, increased by a seasonally adjusted 0.4% on the month, compared to the Dow Jones estimate for 0.3%, the Bureau of Labor Statistics reported Thursday.

Excluding food and energy, core PPI was up 0.3%, in line with the forecast.

The release comes the day after the BLS reported that the consumer price index rose 0.5% on the month, putting the annual inflation rate at 3% and well out of reach of the Fed’s 2% long-run goal.

Together, the releases likely will push back expectations for a rate cut until the second half of the year, though inflation data can be volatile and the outlook could change depending on what subsequent months show.

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