USA: producer-side inflation lower than expected in December (PPI)

USA: producer-side inflation lower than expected in December (PPI)
USA: producer-side inflation lower than expected in December (PPI)

Over one month, wholesale prices increased by 0.2%, compared to 0.4% in November. Analysts were instead expecting an increase of 0.4%.

The wholesale price index in the United States, which measures inflation on the producer side, increased less than expected by analysts in December, a month during which the evolution of food prices calmed down, the opposite of those of energy.

Over one month, wholesale prices increased by 0.2%, compared to 0.4% in November, according to the PPI producer price index published Tuesday by the Labor Department.

This slowdown was not expected by analysts, who instead expected the index to rise by 0.4%, according to the consensus published by Market Watch.

Food prices remained almost stable (-0.1%) although they had jumped by 2.9% the previous month due in particular to tensions on the supply of eggs and poultry linked to avian flu.

Conversely, energy prices rose by 3.5% over one month, after having remained unchanged in November.

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More broadly, over one year, wholesale prices increased by 3.3%, marking a clear acceleration compared to 2023 (+1.1%).

The CPI index measuring inflation experienced by consumers will be published on Wednesday. The PCE index favored by the American central bank (Fed), and which it wants to reduce to 2%, will be published at the end of the month.

Faced with slowing inflation, the Fed has systematically lowered rates during its last three meetings, for a total of one percentage point.

But if inflation rebounds, or stops calming down, the markets anticipate that this downward cycle will be put on hold, to prevent the economy from overheating.

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