Wholesale prices only rose half of what was predicted in December, showing progress in the battle against inflation.
The Producer Price Index for final demand advanced 0.2 percent while the consensus ahead of the release was a rise of 0.4 percent. Final demand prices rose 0.4 percent in November and 0.2 percent in October according to the U.S. Bureau of Labor Statistics.
The index for final demand increased 3.3 percent in 2024 after moving up 1.1 percent in 2023.
The December rise in prices for final demand can be traced to a 0.6-percent advance in the index for final demand goods. Prices for final demand services were unchanged.
The index for final demand less foods, energy, and trade services edged up 0.1 percent in December, the same as in November. Prices for final demand less foods, energy, and trade services rose 3.3 percent in 2024 after advancing 2.7 percent in 2023.
The biggest impact was a rise in energy costs with gas prices up almost 10 percent. Prices for residential electric power, meats, motor vehicles, gas fuels, and fresh fruits and melons also rose.
Overall, food costs edged down 0.1 percent. The index for fresh and dry vegetables declined 14.7 percent.
