US producer costs surge 3.3 percent in last month of 2024

(MENAFN) The Bureau of labor Statistics reported on Tuesday that producer prices in the United States rose by 3.3 percent on a yearly basis in December 2024, a significant increase compared to the 1.1 percent annual rise recorded in December 2023. The data highlights an acceleration in wholesale inflation over the past year.

Market forecasts had predicted a slightly higher annual growth of 3.5 percent for December. On a month-to-month basis, producer prices grew by 0.2 percent, reflecting steady upward pressure on prices across various sectors.

"The December increase in prices for final demand goods is attributable to a 3.5-percent jump in the index for final demand energy," the bureau stated in its release. This sharp rise in energy prices played a major role in the overall increase in producer prices during the month.

It further clarified: "In contrast, prices for final demand foods edged down 0.1 percent, while the index for final demand goods less foods and energy was unchanged." The stability in prices excluding volatile categories like food and energy indicates that inflationary pressures may still be concentrated in specific areas of the economy.

MENAFN15012025000045016755ID1109091516