Inflation Watch: Wholesale Pries Rose 0.2% in December, Less Than Expected

A measure of wholesale prices increase than expected in December, providing indication that pipeline inflation presures as eased to close the year the year Time Soon.

The producer price index rose just 0.2% on the month, less than 0.4% Increase in November and below the down Bureau of Labor Statistics Report Tuesday.

Excluding food and energy, the so-called core ppi was flat compared with the forecast for a 0.3% Rise. Excluding Food, Energy and Trade Services, The Measure Rose Just 0.1%.

On Annual Basis, Headline PPI ROSE 3.3% for the full year, well ahead of the 1.1% increase in 2023.

Goods prices increase 0.6%, pushed by a 9.7% surge in Gasoline Pries. Upward Moves in Several Food- And Energy-Related Measures We OFFSET by a 14.7% slide in pris for fresh and dry vegetables.

On the services side, pris who flat, despite a 7.2% increase in passenger transportation that was offset by a fall in pris for travel.

Stock market futures Shot Higher Folling The Report While Treasury Yields Moved Lower after pushing sharply Higher in the Early Days of 2025.

The release is the first of two key inflation readings this week

On Wednsday, the BlS will release its more closely watched reading on the consumer price index. That is expected to show 0.3% monthly Gains on bot the headline and core readings and respective annual inflation rates of 2.9% and 3.3%.

Thought the Tentral Bank Focuses more on the Commerce Department’s Personal Consumption Expenditures Price Index as its Main Inflation Gauge, The PPI and CPI Readings Figure into that CALCULATION.

Markets pricing overwhelmingly points to the fed storying on hold at the jan. 28-29 meeting. However, policymakers, and Chair jerome power in particular, even the groups for what is ahead as far as rates go.

Fed Funds Futures Pricing Tuesday Implied Just One Rate Cut through the rest of the year; Bank of America Economists on Monday they think the fed could be done this year. Fed Officials at their December Meeting PENCILED In the Equivalent of Two Cuts This year, Assuming Quarter Percentage Point Mrows.