The Labor
Department reported on Tuesday that the U.S. producer-price index (PPI) rose
0.2 per cent m-o-m in December 2024, following an unrevised
0.4 per cent m-o-m climb in November 2024. This marked the weakest monthly increase
in PPI in three months.
For the 12
months through December, the PPI surged by 3.3 per cent, quickening from an unrevised
3.0 per cent soar in the
previous month. This represented the
strongest annual advance since February
2023 (+4.7 per cent).
Economists had anticipated
the headline PPI would gain 0.3 per cent m-o-m and 3.4 per cent over the past
12 months.
According to
the report, the December rise in the headline index can be attributed to a 0.6-per
cent m-o-m gain 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 flat m-o-m and jumped
3.5 per cent over 12 months. Economists had predicted increases of 0.3 per cent
m-o-m and 3.8 per cent y-o-y for December. In November, the core PPI demonstrated
a 0.2 per cent m-o-m advance and a 3.5
per cent y-o-y soar (revised from +3.4 per cent y-o-y in the initial estimate).