The Producer Price Index (PPI) for final demand increased by 0.2% in December, seasonally adjusted, according to the U.S. Bureau of Labor Statistics.
The Producer Price Index (PPI) for final demand increased by 0.2% in December, seasonally adjusted, according to the U.S. Bureau of Labor Statistics. This follows a 0.4% rise in November and a 0.2% increase in October. For the year 2024, the PPI for final demand grew by 3.3% on an unadjusted basis, significantly higher than the 1.1% annual increase recorded in 2023.
The December price increase was largely driven by a 0.6% rise in the index for final demand goods, reflecting stronger price pressures in this category. Meanwhile, prices for final demand services remained unchanged, signaling stability in service-related costs.
When excluding volatile components such as food, energy, and trade services, the PPI for final demand rose by a modest 0.1% in December, matching the growth seen in November. Over the course of 2024, this core measure increased by 3.3%, up from a 2.7% rise in 2023, highlighting ongoing inflationary pressures in underlying producer prices.
The December data underscores a steady upward trend in producer prices, with goods driving much of the monthly and annual growth, while service prices held steady. The notable acceleration in the annual PPI growth for 2024 compared to 2023 reflects broader inflationary dynamics in the U.S. economy.
Source: U.S. Bureau of Labor Statistics
Global markets traded cautiously as shifting Federal Reserve expectations and easing geopolitical risks continued to shape sentiment. President Trump warned he'll bomb Oman if it stands in Washington's way, as reports suggest Iran and Oman are moving toward a deal on Strait of Hormuz control.
Global markets started the week with the dollar under pressure as softer U.S. retail sales, inflation, and consumer sentiment reduced expectations for a September Federal Reserve rate hike.
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Cooling US Data Weakens Dollar Amid Energy Risks (17 – 21 August)Global markets entered the week with the US dollar under renewed pressure as softer inflation, retail sales, and employment data reduced expectations for another near-term Federal Reserve rate hike. The Dollar Index traded around 99.61, while markets assigned roughly a 65% probability that the Fed will keep rates unchanged at 3.50%–3.75% in September. Gold and silver extended their gains as the shift in Fed expectations supported precious metals, while the euro and pound benefited from the dollar’s declining yield advantage.
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