WASHINGTON - The producer price index increased 0.2% on a seasonally adjusted basis in December as year-over-year prices rose by the largest amount in 14 months, the Labor Department reported today.
Core producer prices, those excluding food and energy costs, were flat for the month and increased 0.9% on an annual basis.
Producer prices for the year ending in December rose 4.4%, the largest increase since October 2008. Producer prices turned positive in November, snapping a string of 11 months of year-over-year declines.
Economists expected producer prices to be flat in December and for core prices to increase 0.1%, according to the median estimate from Thomson Reuters.
Prices for finished consumer foods increased 1.4% for the month and finished energy goods prices declined 0.4%. Light motor truck prices declined 1.2% after increasing 4.2% in November. Crude petroleum prices declined 10.6%, the largest decline since July.
Consumer prices rose 0.1% in December and 2.7% for the year, the Labor Department reported last week.
