6.2% increase at an annual rate… Core PPI rose 4.6%
Inflation is easing in producer prices following consumer prices
The US producer price index (PPI) for December fell 0.5 percentage points month-on-month, more than expected. On an annualized basis, it recorded an increase of 6.2%.
On the 18th (local time), the US Bureau of Labor Statistics announced that wholesale goods and services prices fell by 0.5 percentage points in December. On an annual basis, it rose by 6.2%.
In December, commodity prices fell sharply by 1.6%p from the previous month, while the service price index rose by 0.1%p.
A 13.4 per cent drop in gasoline prices in the month of December accounted for nearly half of the decline in producer prices in December, the Bureau of Labor Statistics said.
Core PPI, excluding food and energy, rose 0.1 percentage points, in line with expectations. Core PPI rose 4.6% on an annualized basis.
According to CNBC, economists polled by Dow Jones expected a 0.1% decline.
Following the consumer price index released last week, the wholesale price index appears to be easing its rise. Consumer prices fell 0.1% in December but were up 6.5% from a year ago and 5.7% excluding food and energy.
CPI measures the price consumers pay in the market, while PPI measures the amount companies pay for goods and services.
Guest Reporter Kim Jung-ah [email protected]
