US Producer Prices Increase by a Lower 0.2% in Dec. to Close at a 12-Year High

Source: Bureau of Labor Statistics

The US posted a 0.2% increase in producer prices in December, a lower gain compared to a jump of 1.0% in November. SPY is up +0.021%, DXY is down -0.30%.

• Despite the slower increase in producer prices, the final demand costs rose the highest in a calendar year since 2010 at 9.7% in 2021.
• Final demand services increased by 0.5% in December from the previous month, a lower gain compared to 0.9% jump in November. The increase mainly reflected a 0.8% gain in final demand trade services. 
• Demand goods posted a decline of 0.4%, the first fall since April 2020. The final demand energy prices fell 3.3%, while final demand goods were down 0.6%.