Smaller gain in U.S. producer prices hints of cooler inflation
BNN Bloomberg
Prices paid to U.S. producers decelerated in December as two key drivers of inflation in 2021 -- food and energy -- declined from a month earlier.
Prices paid to U.S. producers decelerated in December as two key drivers of inflation in 2021 -- food and energy -- declined from a month earlier, representing a respite in the recent trend of sizable increases.
The producer price index for final demand increased 0.2 per cent from the prior month after an upwardly revised 1 per cent jump in November, Labor Department data showed Thursday. From a year earlier, the PPI was up 9.7 per cent, the second-largest in figures back to 2010.
However, excluding the volatile food and energy components, the PPI climbed 0.5 per cent in December and was up a larger-than-projected 8.3 per cent from a year earlier.
The mixed report illustrates that while inflations remains elevated, underlying price pressures are showing signs of moderation. The prices of services increased from a month earlier, though less than the prior month.
At the same time, producers continue to face a variety of materials shortages, limited labor supply and transportation bottlenecks that sent prices soaring last year.