U.S. Producer Prices Dip 0.2% In December, Slightly More Than Expected
15 January 2016 - 8:21PM
RTTF2
Reflecting steep drops in prices for food and energy, the Labor
Department released a report on Friday showing that U.S. producer
prices fell by slightly more than expected in December.
The Labor Department said its producer price index for final
demand dipped by 0.2 in December after rising by 0.3 percent in
November. Economists had expected prices to edge down by 0.1
percent.
The decrease in producer prices was partly due to a steep drop
in energy prices, which plunged by 3.4 percent in December after
sliding by 0.6 percent in November.
Food prices also showed a notable decrease, tumbling by 1.3
percent in December after rising by 0.3 percent in the previous
month.
Excluding food and energy prices, the core producer price index
inched up by 0.1 in December following a 0.3 percent increase in
November. The uptick matched economist estimates.
The modest increase in core prices in December was partly due to
a 0.1 percent increase in prices for services, which came after a
0.5 percent advance in November.
The Labor Department said the higher service prices reflected a
0.4 percent increase in prices for final demand services less
trade, transportation, and warehousing.
Compared to the same month a year ago, producer prices were down
by 1.0 percent in December, reflecting a slight deceleration from
the 1.1 percent drop in November.
The annual rate of core producer price growth slowed to 0.3
percent in December from 0.5 percent in the previous month.
The Labor Department is scheduled to release its more closely
watched monthly report on consumer price inflation next
Wednesday.
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