U.S. wholesale inflation increased moderately in December, and less than expected.
The Bureau of Labor Statistics released its monthly Product Price Index report on Jan. 14, showing that the seasonally unadjusted PPI for final demand ticked up 0.2% in December, following a 0.4% unrevised increase in November.
Economists surveyed by Reuters had forecast a 0.3% monthly increase, while the Dow Jones consensus estimate was 0.4%.
December’s gain was driven by a 0.6% increase in final demand.
On an annual basis, December’s PPI increased 3.3%, up from 3.0% in November and a 2.6% gain in October
December’s year-over-year figure was influenced by last year’s lower prices, particularly for energy products, dropping from the calculation.
U.S. Producer Price Index Month-to-Month
The PPI tracks average price shifts at the wholesale level before they reach consumers.
However, core PPI — which excludes volatile food and energy categories — remained unchanged in December, following a 0.1% increase in November.
U.S. Producer Price Index Year-Over-Year
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