According to the Bureau of Labor Statistics, the Producer Price Index's (PPI) final demand came in higher than expected in January with a growth of 0.3% month-over-month — against an expected 0.1% — and 0.9% year-over-year — against an expected 0.6%. Many eyes on Wall Street now turn toward the Federal Reserve and recent comments made by Fed leadership to anticipate the next potential policy decision.

Yahoo Finance Reporter Jennifer Schonberger joins the Live show to break down the economic data print and Atlanta Fed President Raphael Bostic's statements on interest rate cuts.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

RACHELLE AKUFO: The fine inflation print for the week, we saw producer prices data coming in hotter than expected indicating inflation remains sticky. And Atlanta Fed President Raphael Bostic signaling on Thursday that the central bank needs more time to weigh the prospect of an interest rate cut. For more on the Fed's policy playbook, we turn to Yahoo Finance senior reporter Jennifer Schonberger. Hey, Jennifer.

JENNIFER SCHONBERGER: Good morning, Rachelle. That's right. The producer price index clocking in much hotter than expected for January rising nearly a full percentage point nearly matching the level in December after economists had expected a drop. Looking at that number, producer prices, this is what businesses pay to make their products. That shot up 9/10 of a percent last month versus 6/10 of a percent increase that economists were expecting.

That compares with the 1% increase from December. Now those producer prices coming on the heels of a much hotter than expected consumer price report earlier this week that caused investors to push out their bets for when the Fed could begin cutting rates to June from May. All of this as Atlanta Fed President Raphael Bostic became the latest Fed official to caution that the central bank isn't in a rush to cut rates.

Bostic saying in a speech last night he expects inflation will decline more slowly than the pace that markets expect. Signaling rates will be held at current levels longer than markets think. Bostic saying, quote, "my expectation is that the rate of inflation will continue to decline but more slowly than the pace implied by where the market signal monetary policy should be. He went on to say right now a strong labor market and macro economy offered the chance to execute these policy decisions without oppressive urgency.

Now we will hear from San Francisco Fed President Mary Daly later this afternoon. Back to you.