US Producer Price Index Rises in December, Core PPI Below Expectations

The latest data from the US Bureau of Labor Statistics reveals that the Producer Price Index (PPI) for final demand in the United States increased by 1% on a yearly basis in December. This marks a slight uptick from the 0.8% growth recorded in November, which was revised from the initial figure of 0.9%. However, the December reading fell short of market expectations, which had anticipated a 1.3% increase.

Meanwhile, the annual Core PPI, which excludes volatile food and energy prices, showed a 1.8% rise in the same period. This figure is below both the November reading and analysts’ estimates of 2% and 1.9%, respectively. On a monthly basis, the Core PPI remained unchanged for the third consecutive month.

The Producer Price Index is a key economic indicator that measures the average change over time in the selling prices received by domestic producers for their output. The Core PPI provides a more focused view by excluding the often-volatile food and energy components. The latest data indicates a moderate increase in producer prices, falling short of market expectations.