Wholesale Prices Rise Unexpectedly, Intensifying Inflation Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Source: CNBC
- Core PPI Surge: The core Producer Price Index (PPI) rose by 0.8% in January, exceeding the market expectation of 0.3%, indicating persistent inflationary pressures that could influence the Fed's interest rate decisions.
- Overall Price Trends: The headline PPI increased by 0.5%, also surpassing the forecast of 0.3% and up 0.1 percentage points from the previous month, suggesting that inflation is not easing and may pose challenges to economic recovery.
- Service Price Drivers: Service prices rose by 0.8%, marking the highest increase since July 2025, with over 20% of this increase attributed to margins in professional and commercial equipment wholesaling, reflecting strong demand in the services sector.
- Goods Price Fluctuations: While overall goods prices fell by 0.3%, core goods prices increased by 0.7%, and metal prices surged by 4.8%, indicating robust demand for certain goods that may impact future supply chain costs.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FCX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FCX
Wall Street analysts forecast FCX stock price to fall
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 60.490
Low
46.00
Averages
58.79
High
70.00
Current: 60.490
Low
46.00
Averages
58.79
High
70.00
About FCX
Freeport-McMoRan Inc. is an international metals company focused on copper. The Company operates geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. The Company's segments include the Morenci and Cerro Verde copper mines, the Indonesia operations (including the Grasberg minerals district and PT-FI’s downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining. Its operations include North America, South America and Indonesia. In North America, it manages seven copper operations: Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines: Henderson and Climax in Colorado. It also operates a copper smelter in Miami, Arizona. In South America, it manages two copper operations: Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Grasberg minerals district also produces gold and silver.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AI-Driven Surge in Copper Demand
- Surge in Copper Demand: Druckenmiller highlights a significant increase in copper demand driven by AI data centers, projecting a global refined copper deficit of 330,000 metric tons by 2026, with data centers alone requiring approximately 475,000 metric tons this year, an increase of 110,000 metric tons from last year, indicating robust market demand.
- Supply Shortage Issues: He emphasizes that there will be virtually no new copper production for the next eight years due to a CapEx depression in the mining sector, where new projects take over 15 years to move from discovery to production, exacerbated by a fatal mudslide at Freeport-McMoRan’s Grasberg mine, tightening supply further.
- Copper Price Hits Record High: Copper prices reached an all-time intraday high of $14,527.50 per metric ton on January 29, reflecting the depletion of global inventories due to large projects like OpenAI’s “Stargate,” with current copper futures trading at $5.9325 per pound, up 1.47% from previous levels.
- Investment Strategy Shift: Druckenmiller opts to invest directly in copper commodities rather than mining equities to avoid operational risks associated with individual miners, using futures contracts to track copper prices, believing the current market is very tight and serves as a primary hedge against potential inflationary growth.
See More
Copper Shortage Intensifies, Supply-Demand Imbalance Looms Over Next Decade
- Supply-Demand Imbalance Forecast: According to a study by S&P Global, copper demand is projected to reach 42 million metric tons by 2040, a 50% increase from current levels, while a supply deficit of 10 million metric tons is anticipated, indicating a severe market imbalance in the coming years.
- Price Surge Driven by Shortages: The tight supply has caused U.S. copper futures to soar over 41% in 2025, marking the largest increase since 2009, reflecting strong demand for copper and the fragility of supply chains in the market.
- Mine Supply Disruptions: In 2025, three major copper mines faced shutdowns due to natural disasters and accidents, leading to downward revisions in production forecasts, particularly for the Kamoa Kakula mine in Congo and El Teniente mine in Chile, with production expected to be depressed for the next five years.
- Tariff Impact on Market: The U.S. imposed a 50% tariff on semi-finished copper products, resulting in heavy stockpiling domestically while creating tight supply conditions outside the U.S., leading to an
See More
Oil Price Surge Drives Significant Stock Movements
- Oil Price Impact: Oil prices surged past $110 per barrel due to the ongoing Iran conflict, leading Chevron to hit an all-time high, while Talos Energy rose by 5%, and ConocoPhillips and Northern Oil gained 2% and 3% respectively, indicating strong performance among oil companies in a high-price environment.
- Hims & Hers Health Surge: The company's stock soared 39% after striking a deal with Novo Nordisk to sell its weight-loss drug, resolving a lawsuit over a copycat version, which is expected to significantly enhance its market share and brand reputation.
- Live Nation Settlement Near: Live Nation's shares rose 6% as it nears a settlement with the Department of Justice regarding monopoly allegations in the live concert industry, which, if successful, will stabilize and expand its future business operations.
- United Therapeutics Buyback Plan: The pharmaceutical company's shares increased by over 8% after its board authorized a $2 billion stock repurchase plan, with $1.5 billion allocated for accelerated buybacks, which is expected to boost investor confidence and enhance shareholder value.
See More
Oil Prices Surge, Boosting Oil Stocks Ahead of Market Open
- Oil Price Surge: Oil prices surged to $110 per barrel due to the ongoing Iran War, reaching levels not seen since mid-2022, which boosted oil stocks with Talos Energy rising 5%, and Northern Oil and Gas and ConocoPhillips gaining 3% and 2%, respectively.
- Hims & Hers Health: The stock skyrocketed 51% after a deal with Novo Nordisk was reported, allowing the sale of the pharmaceutical company's weight-loss drug on its platform, effectively ending a lawsuit aimed at blocking its sale of a copycat version, which is expected to significantly enhance its market share.
- Live Nation Entertainment: Shares rose 9% following reports that the company is nearing a settlement with the Department of Justice over alleged monopolistic practices in the live concert industry, which could improve its market position and reduce legal risks.
- Airline Stock Declines: Airline stocks fell as rising oil prices and the fallout from the Iran War impacted global travel, with Delta Air Lines down about 3%, and American Airlines and United Airlines shedding 4%, indicating the industry's cost pressures and operational challenges.
See More
Gold Prices Decline Again Amid Ongoing Conflict: Implications for Its Safe-Haven Status.
- Gold Price Decline: The price of gold decreased early Monday despite increasing geopolitical tensions related to the war in Iran.
- Haven Asset Concerns: The drop in gold prices raises questions about its effectiveness as a safe haven asset during times of crisis.
See More
Stock Market Movers: Chevron, Hims & Hers, Carnival, Delta, Newmont, Vertiv, and Others
- Stock Market Reaction: Stock futures are declining on Monday due to rising oil prices.
- Oil Price Surge: Oil prices have exceeded $100 a barrel following attacks on fuel plants in the Middle East.
See More
AI-Driven Surge in Copper Demand
- Surge in Copper Demand: Druckenmiller highlights a significant increase in copper demand driven by AI data centers, projecting a global refined copper deficit of 330,000 metric tons by 2026, with data centers alone requiring approximately 475,000 metric tons this year, an increase of 110,000 metric tons from last year, indicating robust market demand.
- Supply Shortage Issues: He emphasizes that there will be virtually no new copper production for the next eight years due to a CapEx depression in the mining sector, where new projects take over 15 years to move from discovery to production, exacerbated by a fatal mudslide at Freeport-McMoRan’s Grasberg mine, tightening supply further.
- Copper Price Hits Record High: Copper prices reached an all-time intraday high of $14,527.50 per metric ton on January 29, reflecting the depletion of global inventories due to large projects like OpenAI’s “Stargate,” with current copper futures trading at $5.9325 per pound, up 1.47% from previous levels.
- Investment Strategy Shift: Druckenmiller opts to invest directly in copper commodities rather than mining equities to avoid operational risks associated with individual miners, using futures contracts to track copper prices, believing the current market is very tight and serves as a primary hedge against potential inflationary growth.
See More
Copper Shortage Intensifies, Supply-Demand Imbalance Looms Over Next Decade
- Supply-Demand Imbalance Forecast: According to a study by S&P Global, copper demand is projected to reach 42 million metric tons by 2040, a 50% increase from current levels, while a supply deficit of 10 million metric tons is anticipated, indicating a severe market imbalance in the coming years.
- Price Surge Driven by Shortages: The tight supply has caused U.S. copper futures to soar over 41% in 2025, marking the largest increase since 2009, reflecting strong demand for copper and the fragility of supply chains in the market.
- Mine Supply Disruptions: In 2025, three major copper mines faced shutdowns due to natural disasters and accidents, leading to downward revisions in production forecasts, particularly for the Kamoa Kakula mine in Congo and El Teniente mine in Chile, with production expected to be depressed for the next five years.
- Tariff Impact on Market: The U.S. imposed a 50% tariff on semi-finished copper products, resulting in heavy stockpiling domestically while creating tight supply conditions outside the U.S., leading to an
See More
Oil Price Surge Drives Significant Stock Movements
- Oil Price Impact: Oil prices surged past $110 per barrel due to the ongoing Iran conflict, leading Chevron to hit an all-time high, while Talos Energy rose by 5%, and ConocoPhillips and Northern Oil gained 2% and 3% respectively, indicating strong performance among oil companies in a high-price environment.
- Hims & Hers Health Surge: The company's stock soared 39% after striking a deal with Novo Nordisk to sell its weight-loss drug, resolving a lawsuit over a copycat version, which is expected to significantly enhance its market share and brand reputation.
- Live Nation Settlement Near: Live Nation's shares rose 6% as it nears a settlement with the Department of Justice regarding monopoly allegations in the live concert industry, which, if successful, will stabilize and expand its future business operations.
- United Therapeutics Buyback Plan: The pharmaceutical company's shares increased by over 8% after its board authorized a $2 billion stock repurchase plan, with $1.5 billion allocated for accelerated buybacks, which is expected to boost investor confidence and enhance shareholder value.
See More
Oil Prices Surge, Boosting Oil Stocks Ahead of Market Open
- Oil Price Surge: Oil prices surged to $110 per barrel due to the ongoing Iran War, reaching levels not seen since mid-2022, which boosted oil stocks with Talos Energy rising 5%, and Northern Oil and Gas and ConocoPhillips gaining 3% and 2%, respectively.
- Hims & Hers Health: The stock skyrocketed 51% after a deal with Novo Nordisk was reported, allowing the sale of the pharmaceutical company's weight-loss drug on its platform, effectively ending a lawsuit aimed at blocking its sale of a copycat version, which is expected to significantly enhance its market share.
- Live Nation Entertainment: Shares rose 9% following reports that the company is nearing a settlement with the Department of Justice over alleged monopolistic practices in the live concert industry, which could improve its market position and reduce legal risks.
- Airline Stock Declines: Airline stocks fell as rising oil prices and the fallout from the Iran War impacted global travel, with Delta Air Lines down about 3%, and American Airlines and United Airlines shedding 4%, indicating the industry's cost pressures and operational challenges.
See More
Gold Prices Decline Again Amid Ongoing Conflict: Implications for Its Safe-Haven Status.
- Gold Price Decline: The price of gold decreased early Monday despite increasing geopolitical tensions related to the war in Iran.
- Haven Asset Concerns: The drop in gold prices raises questions about its effectiveness as a safe haven asset during times of crisis.
See More
Stock Market Movers: Chevron, Hims & Hers, Carnival, Delta, Newmont, Vertiv, and Others
- Stock Market Reaction: Stock futures are declining on Monday due to rising oil prices.
- Oil Price Surge: Oil prices have exceeded $100 a barrel following attacks on fuel plants in the Middle East.
See More
