Jan. 14 (UPI) — U.S. wholesale prices rose at a slower pace than expected in December, the Labor Department reported on Tuesday.
The December PPI Index rose a seasonally adjusted 0.2% while the rate for the core producer price index over the same period remained flat. Annual PPI was up 3.3% compared to a 1.1% increase in 2023.
The number was lower than Dow Jones estimates, which had predicted that producer prices had risen 0.4% in December. Prices did rise 0.4% in November, easing the pain of inflation for wholesalers.
The report said the rise in prices was due to a 0.6% increase in goods over the month while prices for final demand services remained unchanged. The price for core PPI, not includingfood, energy, and trade services, rose 0.1%in December, the same as in November.
The Labor Department noted that it was the third consecutive monthly increase for PPI goods.
The PPI index, without food, energy, and trade services for 2024 increased 3.3%, more than one point over the Fed benchmark, and higher than the 2.7% the core PPI rose in 2023.
“The December increase in prices for final demand goods is attributable to a 3.5% jump in the index for final demand energy,” the Labor Department said. “In contrast, prices for final demand foods edged down 0.1% while the index for final demand goods less food and energy were unchanged.”
The final service demand index leveled off after increasing 0.3% in November. The 2.2% increase in final demand transportation and warehousing service was offset by 0.2% in less trade, transportation and warehousing and final demand trade services.