Wholesale Inflation Rises Less Than Expected
Wholesale inflation rose less than anticipated in December (Bloomberg, subscription).
What’s going on: “The producer price index for final demand rose 0.2% from a month earlier, according to a Bureau of Labor Statistics report released Tuesday.”
- Economists surveyed by Bloomberg had anticipated a median 0.4% increase.
- Compared to December 2023, the overall index rose 3.3%.
Core PPI: The core PPI reading, which excludes food and energy costs, was unchanged in December. Economists had forecast a 0.2% jump.
- Year-over-year, core PPI rose 3.5%.
The details: “The PPI report showed a 0.1% decline in food prices, including a nearly 15% slide in the cost of vegetables. Energy prices advanced 3.5%.”
- The cost of goods rose 0.6% overall in December, following a 0.7% increase in November.
- Good prices excluding food and energy costs did not change.
Services: Service prices were unchanged in December, showing “one of the tamest readings of 2024 and reflecting declines in margins.”
What it could mean: “The smaller than expected monthly increase by producer prices may help ease recent concerns about the outlook for inflation and interest rates, although the faster annual growth may keep buying interest somewhat subdued” (RTTNews).