US producer prices rose 0.2% last month on higher energy costs
By PAUL WISEMAN, AP Economics Writer
WASHINGTON (AP) — U.S. wholesale inflation rose last month on higher energy prices.
The Labor Department reported Tuesday that its producer price index — which tracks inflation before it hits consumers — rose 0.2% last month from November, down from a 0.4% gain the month before. Compared to a year earlier, producer prices rose 3.3%, biggest jump since February 2023 and up from a 3% gain in November.
A 3.5% November-to-December increase in energy prices — led by a 9.7% increase in gasoline prices — pushed the overall index higher. Food prices dipped 0.1% in December.
Still, the overall increases were slightly less than economists had forecast. U.S. markets leapt higher immediately on the new inflation data.
Excluding food and energy prices, so-called core wholesale inflation was unchanged from November but up 3.5% from a year earlier.
The producer price report came out a day before the Labor Department reports on consumer prices. Its consumer price index is expected to rise 0.3% from November and 2.8% from December 2023, according to a survey of forecasters by the data firm FactSet.