U.S. wholesale prices rise scant 0.2% in December in sign high inflation might be starting to ease

- Advertisement -


Numbers: Wholesale prices rose just 0.2% in December to mark the smallest increase in 13 months, perhaps a sign that inflation is finally starting to ease after the biggest increase in nearly 40 years.

- Advertisement -

Growth in the producer price index fell from the 0.4% forecast of economists polled by The Wall Street Journal.

- Advertisement -

The increase in wholesale prices in the last one year has come down to 9.7% from 9.8% in the previous month. This was the first drop in the annual rate since the start of the pandemic.

Nevertheless, it is expected to be one of the biggest increases since the index was configured in 2009 and one of the fastest rates in nearly 40 years.

- Advertisement -

A separate measure of wholesale prices that separates the most volatile goods and services rose 0.5% sharply last month, government said on Tuesday,

This so-called core rate has climbed 6.9% over the past year, unchanged from the previous month.

big picture: Lower increases in wholesale inflation are a welcome sign as they foreshadow changes in the prices consumers pay. Consumer inflation rose 7% in 2021 and grew at the fastest pace in nearly 40 years.

Yet there is still a lot of inflationary pressure in the economy and prices are unlikely to ease by the end of the year.

Concerned about rising inflation, the Federal Reserve plans to raise interest rates soon and take other steps to ease price pressure.

Market Feedback: Dow Jones Industrial Average DJIA,
+0.11%
and S&P 500 SPX,
+0.28%
Were set to open higher in Thursday’s trading. Despite the Federal Reserve preparing to raise interest rates, investors are not worried about high inflation.

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox