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Inflation & Prices

US Producer Price Index Declines by Most Since Start of Pandemic

  • PPI for final demand dropped 0.5% in December, core up 0.1%
  • Decrease was driven by lower costs for gasoline and food
Bloomberg business news
Retail Sales Fall More Than Forecast, PPI Also Declines
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US producer prices dropped in December by the most since the start of the pandemic, extending a months-long pullback in inflationary pressures and giving the Federal Reserve room to slow the pace of interest-rate hikes.  

The producer price index for final demand fell 0.5% last month, the most since April 2020, and was up 6.2% from a year earlier, Labor Department data showed Wednesday. The median estimates in a Bloomberg survey of economists called for the index to fall 0.1% from a month earlier and rise 6.8% from December 2021.