CNN
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There appears to be some welcome news on the US inflation front.
Wholesale price increases were much more moderate than expected in December, according to the latest producer price index released Tuesday, indicating that inflation may not reaccelerate as much as feared.
However, Tuesday’s positive PPI report could simply be “the calm before the storm,” warned economist Chris Rupkey of FwdBonds. President-elect Donald Trump has threatened to impose a series of steep tariffs on the United States’ major trading partners, stoking fears that higher costs will be passed on to American consumers.
“A small victory today on the inflation front, and it is the new president-elect’s policies that can either continue progress on inflation or make it worse,” Rupkey wrote in a commentary published Tuesday .
In December, the producer price index, which measures the average change in prices paid to U.S.-based producers of goods and services, increased by 0.2% from the previous month and by 3.3%. for the year ended in December, according to data from the Bureau of Labor Statistics. published Tuesday.
A rise in energy costs is behind the monthly increase, according to the report. Wholesale energy prices rose 3.5% over the month, pushing up goods prices and the overall index.
In November, prices rose 0.4% for the month – partly due to soaring egg prices – and 3% annually.
A closely watched measure of underlying inflation did not move much in December: the core PPI, which excludes volatile food and energy prices, remained stable from November and increased is maintained at 3.5% per year.
Although the annual PPI rate is at its highest level since February 2023, prices have not increased as much as expected: economists expected the PPI to rise by 0.3% on a monthly basis and by 3 .4% per year.
This story is developing and will be updated.