US Producer Prices Fall Again, Boosting Bets on Fed Rate Cuts
- PPI declined for a third month in December, longest since 2020
- Details that inform Fed’s inflation index were mostly soft
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Prices paid to US producers extended their retreat in December, prompting traders to increase bets on how aggressively the Federal Reserve will cut interest rates this year.
The producer price index for final demand decreased 0.1% for a third straight month — the longest streak since 2020 — while the so-called core PPI that excludes food and energy was little changed for a third month, Labor Department data showed Friday. On an annual basis, the core gauge rose 1.8%, the smallest advance since the end of 2020.