Producer price index for final demand rises 0.2%

In another report on Thursday, the Labor Department said the producer price index for final demand increased 0.2% last month. That was the smallest gain in the PPI since November 2020 and followed a 1.0% jump in November.

The PPI was restrained by a 0.4% drop in goods prices, the first decline since April 2020. That reflected decreases in food and energy prices. Goods prices advanced 1.1% in November. Excluding food and energy, goods prices rose 0.5% after increasing 0.8% in November.

Services prices rose 0.5% after accelerating 0.9% in November. In the 12 months through December, the PPI increased 9.7% after shooting up 9.8% in November.