Wholesale prices can offer an early look at where consumer inflation might be headed.
Despite the pullback in sales, home prices continued to rise last month.
The S&P 500 dropped 1.6% after a report showed U.S. employers cut more jobs last month than they created.
On a monthly basis, consumer prices rose 0.2% in January from December, while core prices rose 0.3%.
Some analysts say they expect layoffs ordered by the Department of Government Efficiency to show up in the report in the coming weeks.
Despite showing some signs of weakening during the past year, the labor market remains healthy with plentiful jobs and relatively few layoffs.
Some reports on the U.S. economy helped bolster hopes that it can manage to avoid a recession.
Worries over the economy are front and center after a series of disappointing reports, including a weaker-than-expected jobs report on Friday.
The market had rallied a day earlier following a report showing that inflation was cooling.
U.S. stocks rallied to records on hopes that inflation is heading back in the right direction.