US: Annual PPI rises to 9.7% in December vs. 9.8% expected

Headline PPI rose at a pace of 9.7% in December, slightly below expected.
Core PPI was up 8.3% YoY, more than expected.

Joel Frank Independent Analyst

The headline US Producer Price Index (PPI) rose at an annual pace of 9.7% in December, according to the latest report from the US Bureau of Labor Statistics on Thursday. That marked a new series record high (PPI was first reported back in 2011) but was slightly below the median economist forecast for 9.8% and a slight acceleration versus November's 9.6% reading. MoM, PPI came in at 0.2% in December, below expectations for a 0.4% MoM gain.

Contrary to the headline reading, Core PPI came in at 8.3% YoY which was above expectations for an 8.0% reading and marked a larger than expected acceleration from November's 7.7% YoY pace of price growth. MoM, Core PPI was up 0.5%, in line with expectations, marking a deceleration in the pace of MoM price growth from November 0.9% reading, which had been revised up from 0.7%.

Market Reaction

The DXY did not see any notable reaction to the latest data.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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