Wholesale inflation in the U.S. fell in December, according to the Associated Press, further evidence that price pressures in the economy are easing.
The Labor Department reported today that its producer price index — which tracks inflation before it reaches consumers — declined 0.1% from November to December. Measured year over year, producer prices rose by a mild 1%.
Excluding volatile food and energy costs, so-called “core” wholesale prices were unchanged from November and up 1.8% from a year earlier. Core inflation, by omitting prices that tend to fluctuate from month to month, is seen by many economists as a better guide to the direction of inflation.
This morning’s report reinforced the view that U.S. inflation pressures are slowing, if not always consistently. The producer figures, which reflect prices charged by manufacturers, farmers, and wholesalers, can eventually influence consumer prices.
