US producer prices rise moderately in December
Published On Jan 14, 2025, 8:56 AM
In December, U.S. producer prices rose by 0.2%, a slower increase compared to analysts' expectations of 0.3%. Year-on-year, the producer price index (PPI) showed a 3.3% rise, reflecting a higher baseline as lower prices from the previous year fell out of the calculation. This moderate increase in producer prices is unlikely to shift the Federal Reserve's stance on interest rates, which many analysts expect will remain unchanged through mid-2025, despite optimistic job reports and concerns about inflation stemming from policy changes under the new administration.
Stock Forecasts
SPY
Positive
The moderate increase in PPI indicates a stable pricing environment, which could lead to sustained interest rates from the Fed. This environment is generally favorable for stocks, especially in sectors that benefit from stable or growing economic conditions.
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