US December Producer Price Index (PPI) rises 0.5% m/m, topping forecasts

Uk Jin

Summary

The US December Producer Price Index (PPI) rose 0.50% m/m, exceeding the forecast of 0.20%.
The December PPI climbed 3.0% y/y, coming in higher than market expectations.
Producer prices are considered a leading indicator of consumer inflation, as they are reflected in final consumer-goods prices after a certain period.

The US Producer Price Index (PPI) for December came in above market expectations.

According to the US Department of Labor on the 30th (local time), the December PPI rose 0.50% from the previous month, surpassing the forecast (0.20%). On a year-on-year basis, the PPI also climbed 3.0%, coming in higher than market expectations.

Producer prices are viewed as a leading indicator of consumer inflation, as they tend to be passed through to final consumer-goods prices after a certain period.