WASHINGTON (Reuters) – U.S. producer prices fell in December as the costs of energy products and food declined, riven by a drop in energy prices that are now reversing The producer price index for final demand decreased 0.5% last month, the Labor Department said on Wednesday. In the 12 months through December, the PPI increased 6.2% after climbing 7.3% in November.
The core PPI advanced 0.3% in November. In the 12 months through December, the core PPI rose 4.6%
A 1.6% decline in the prices of goods accounted for the drop in the PPI. Goods, which gained 0.1% in November, were pulled down by a 7.9% plunge in energy and a 1.2% drop in food prices. Services prices edged up 0.1% after rising 0.2% in November.
Excluding the volatile food, energy and trade services components, producer prices gained 0.1% in December. The core PPI advanced 0.3% in November.
In the 12 months through December, the core PPI rose 4.6% after increasing 4.9% in November. Another disaster spun by wallstreet as good news.
A 4.6% rise in core PPI does not give the fed a warm and fussy feeling. It pokes the bear….. Remember energy prices are heading back up since the one time plunge