US producer inflation annually rises 1% in December, falls 0.1% monthly

By Ovunc Kutlu

ISTANBUL (AA) - US producer inflation annually rose 1% in December, but fell 0.1% on a monthly basis, with both figures below estimates, according to official figures released on Friday.

The producer price index (PPI), which measures changes in the price of goods and services from a producer perspective, was expected to show an annual gain of 1.3%, while the market estimated to post a monthly increase of 0.1%.

The annual figure for November was revised down to an increase of 0.8% from 0.9%, while the figure recorded a 0.1% decline.

"The December decrease in the index for final demand is attributable to a 0.4-percent drop in prices for final demand goods," the Labor Department said in a statement. "The index for final demand services was unchanged."

Core producer prices, which exclude food, energy and trade, increased 0.2% in December after rising 0.1% in the month before.

Core PPI in December increased 2.5% on an annual basis following a gain of 2.4% in November.