US Producer Prices Increase more than Expected

(MENAFN) US producer prices increased more than anticipated in December, with the Producer Price Index rising 3 percent year-on-year. This exceeded expectations of 2.7 percent and matched November’s increase of 3 percent.

On a monthly basis, the PPI climbed 0.5 percent, surpassing forecasts of a 0.3 percent gain.

The rise in prices for final demand was driven by a 0.7 percent increase in services, while prices for goods remained unchanged. Two-thirds of the increase in service prices came from a 1.7 percent jump in trade service margins.

Core PPI, which excludes food and energy costs, rose 0.7 percent month-on-month, above the projected 0.2 percent increase. Over the year, prices for final demand less food, energy, and trade services grew 3.5 percent, following a 3.6 percent rise in 2024.

This marks the eighth consecutive monthly increase in core producer prices, reflecting persistent inflationary pressures in the US economy.

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