The Labor
Department reported on Friday the U.S. producer-price index (PPI) slipped 0.1
per cent m-o-m in December 2023, following a downwardly revised 0.1 per cent
m-o-m drop (from flat m-o-m) in November. This marked the
third straight monthly decrease in PPI.
For the 12
months through December, the PPI increased by 1.0 per cent, accelerating from a
downwardly revised 0.8 per cent gain (from +0.9 per cent) in the previous
month.
Economists had forecast
the headline PPI would rise 0.1 per cent m-o-m and 1.3 per cent over the past
12 months.
According to
the report, the December slip in the headline index was due to a 0.4-per cent m-o-m
decrease in the index for final demand goods. Meanwhile, the index for final
demand services remained unchanged.
Excluding
volatile prices for food and energy, the PPI was unchanged m-o-m but climbed
1.8 per cent over 12 months, registering its weakest increase since December
2020 (+1.4 per cent y-o-y). Economists had forecast advances of 0.2 per cent
m-o-m and 1.9 per cent y-o-y for December. In November, the core PPI showed a flat m-o-m performance and a 2.0 per cent y-o-y increase.