News

The Producer Price Index for final demand (also known as wholesale prices) increased 0.2% in December, after rising 0.4% in November. In 2024, the final demand index rose 3.3% on an unadjusted basis, which is the largest increase since the year-over-year gain in February 2023 of 4.7%. Prices for final demand excluding foods, energy and trade services inched up 0.1%, the same as November. Prices for these goods increased 3.3% in 2024 after moving up 2.7% in 2023.

In December, prices for final demand services stayed the same, after four consecutive increases, while prices for final demand goods rose 0.6%. The increase in the index can be attributed to prices for final demand energy, which rose 3.5%, and was led by a 9.7% increase in the index for gasoline. The index for final demand goods, excluding foods and energy, was unchanged.

Processed goods for intermediate demand increased 0.3% in December. This change was led by a 1.6% rise in the index for processed energy goods. On the other hand, prices for diesel fuel dropped 1.3%. Prices for processed goods for intermediate demand advanced 0.2% over 2024 after declining 2.8% in 2023.

Meanwhile, prices for unprocessed goods for intermediate demand moved up 3.2% in December, the largest increase since August 2022. The rise was driven by a 10.0% boost in energy materials, led by a 57.7% jump in the natural gas price index. Alternatively, prices for carbon steel scrap dropped 11.7%. Prices for unprocessed goods for intermediate demand rose 5.1% in 2024 after falling 18.7% in 2023.