Producer prices beat expectations across the board.
Producer prices fell by 0.3% in December, a bit less than expected, and when compared to last year, prices rose 1.1%, which also beat expectations.
“Core” prices, which exclude the more volatile costs of food and energy, rose 0.3% month-on-month in December and rose 2.1% when compared to the prior year.
Expectations were for prices to fall 0.4% in December from the prior month, with prices expected to rise 0.1% when stripping out the more volatile costs of food and energy.
When compared to the prior year, prices were expected to rise 1%, and when stripping out food and energy prices are expected to rise 1.9%.
In a note following the report, Ian Shepherdson at Pantheon Macro said the trend is “low and stable.”