Economic Report: Producer prices jump along with energy costs Express News
Wholesale inflation rose in December, and the yearly increase surged, as deflationary pressures from the swoon in energy prices began to fade.
The producer price index rose 0.3% in December, the Labor Department said Friday. That matched the consensus forecast from economists surveyed by MarketWatch.
Compared to a year ago, the index rose 1.6%, the strongest gain since September 2014. Excluding food, energy and trade, prices were up 1.7%.
While the 2014 plunge in oil prices has been one of the biggest factors holding down inflation, it’s not the only one. “Modest global growth and copious spare capacity in many industries will limit the upside, and the overall near-term trend is likely to be only moderately higher, if that,” wrote MFR Chief Economist Joshua Shapiro in a note Friday morning.
The stronger dollar
will also weigh on inflation, Shapiro noted.