Inflation watch: Wholesale prices rose 0.2% in December, less than expected

Source: CNBC

Economy
Inflation watch: Wholesale prices rose 0.2% in December, less than expected

Published Tue, Jan 14 20258:31 AM EST Updated 48 Min Ago
Jeff Cox
@jeff.cox.7528
@JeffCoxCNBCcom

Key Points
* The producer price index rose 0.2% in December, less than the 0.4% increase in November and below the Dow Jones consensus estimate for 0.4%.
* Excluding food and energy, the so-called core PPI was flat compared with the forecast for a 0.3% rise.
* The release is the first of two key inflation readings this week that likely will figure into the Federal Reserve's interest rate decision later in January.

A measure of wholesale prices increased less than expected in December, providing indication that pipeline inflation pressures eased to close the year though likely not enough to provoke another Federal Reserve interest rate cut anytime soon.

The producer price index rose just 0.2% on the month, less than the 0.4% increase in November and below the Dow Jones consensus estimate for 0.4%, according to a Bureau of Labor Statistics report Tuesday.

Excluding food and energy, the so-called core PPI was flat compared with the forecast for a 0.3% rise. Excluding food, energy and trade services, the measure rose just 0.1%. ... On an annual basis, headline PPI rose 3.3% for the full year, well ahead of the 1.1% increase in 2023.

Goods prices increased 0.6%, pushed by a 9.7% surge in gasoline prices. Upward moves in several food- and energy-related measures were offset by a 14.7% slide in prices for fresh and dry vegetables.

{snip}

Read more: https://www.cnbc.com/2025/01/14/ppi-december-2024-.html