Numbers: Wholesale prices rose only 0.2% in December, the lowest increase in 13 months. This shows that inflation is finally beginning to ease, perhaps after the largest rise in nearly 40 years.
The rise in the producer price index was below the 0.4% forecast of economists polled by The Wall Street Journal.
The rise in wholesale prices over the past year has fallen from 9.8% last month to 9.7%. This was the first decline in annual rates since the early days of the pandemic.
Still, it’s one of the biggest increases since it was indexed in 2009, Probably one of the fastest rates in nearly 40 years.
Another measure of wholesale prices that removes the most volatile goods and services rose 0.5% faster last month. The government said on Tuesday..
This so-called core rate has remained unchanged from the previous month, rising 6.9% over the past year.
Big picture: A slight increase in wholesale inflation is a welcome sign as it tends to foresee changes in prices paid by consumers. Consumer inflation surged 7% in 2021 And it increased at the fastest pace in nearly 40 years.
Still, the economy still has a lot of inflationary pressure and it is unlikely that prices will fall by the end of the year.
Sounded a warning to the surge in inflation, The Federal Reserve plans to raise interest rates soon Take other steps to reduce price pressure.
Market reaction: Dow Jones Industrial Average
And S & P 500
Set to open higher on Thursday trading. Investors don’t rattle about high inflation, even though the Federal Reserve is preparing to raise interest rates.
U.S. wholesale prices rose only 0.2% in December, indicating that high inflation may have begun to ease.
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