A key measure of U.S. producer prices unexpectedly fell in December and the overall gauge declined more than forecast amid lower oil prices, signaling potential inflation pressures in the economy are contained.
Excluding food and energy, producer prices decreased 0.1% from the prior month, the first decline in a year, a Labor Department report showed Tuesday. The overall producer-price index fell 0.2% from November after a 0.1% rise. The Bloomberg survey median called for a 0.2% increase in the so-called core PPI and a month-over-month drop in the main PPI.
The figures, which measure wholesale and other selling costs at businesses, suggest such prices are firming up only gradually. They’re also in line with consumer price data that showed a drag from energy costs while core inflation held steady, giving the Federal Reserve little urgency to raise interest rates soon. Within final demand PPI for goods, energy costs fell 5.4% from November while food costs climbed 2.6%.
