Wholesale Inflation Falls to 6.2% Beating Estimates, Continuing the Decline Seen in the Last Half of 2022.
U.S. producer prices fell more than expected in December. Leading the decline was a drop in energy and food prices. December PPI final demand decreased 0.5%. Data for November was revised lower to show the PPI rising 0.2% instead of 0.3% as previously reported.
PPI increased 6.2% after climbing 7.3% in November. Forecasts from economists projected the PPI dipping 0.1% on the month and gaining 6.8% year-on-year.
Today’s report comes on the heels of news last week that monthly consumer prices fell for the first time in more than 2-1/2 years in December. Inflation is subsiding as the Federal Reserve’s fastest interest rate hiking cycle since the 1980s cools demand for goods.