By Matt Grossman

Prices charged by American producers for their goods and services rose by 0.2% in December, a softer-than-expected reading.

The December figure marked a deceleration from monthly producer-price increases in November, when prices rose by 0.4% according to data published Tuesday by the Department of Labor. Economists polled by The Wall Street Journal had forecast that the PPI would rise by 0.4% in December.

In 2024 as a whole, PPI inflation ran at 3.3%, up from 1.1% in 2023, the Labor Department said.

The PPI isn't designed to show inflation as people experience it at restaurants and stores. For that, economists look to the consumer-price index. December CPI figures are due Wednesday morning.

The PPI is watched closely in part because its data are blended with the CPI to calculate the Fed's preferred way of measuring inflation, the personal consumption expenditures price index.

At 2.8% over the 12 months through November, the core version of the PCE inflation--which excludes volatile food and energy prices--has remained well above the Fed's 2% target.

Write to Matt Grossman at matt.grossman@wsj.com


(END) Dow Jones Newswires

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