The US Producer Price Index (PPI) increased by 0.2% in December, according to data from the Department of Labor’s Bureau of Labor Statistics (BLS). On an annual basis, the PPI rose by 3.3%, the highest since February 2023. Core PPI, which excludes food, energy and trade services, also edged up by 0.1% for the second consecutive month and increased by 3.3% annually. Fastmarkets’ analysts suggested the softer producer inflation may be a short-term trend, and the Federal Reserve is likely to hold off on cutting interest rates until later this year, given ongoing inflationary pressures and a strong labor market.

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