U.S. producer price growth came in line with economist estimates in the month of December, the Labor Department revealed in a report on Friday.
The Labor Department said its producer price index for final demand rose by 0.3 percent in December after climbing by 0.4 percent in November.
The increase in producer prices was primarily due to a jump in energy prices, which spiked by 2.6 percent in December after dipping by 0.3 percent in November.
Gasoline prices led the way higher, shooting up by 7.8 percent, while prices for liquefied petroleum gas also increased.
The report also said food prices climbed by 0.7 percent in December following a 0.6 percent increase in the previous month.
Excluding food and energy prices, core producer prices edged up by 0.2 percent in December after rising by 0.4 percent in November. Core prices had been expected to inch up by 0.1 percent.
The Labor Department said prices for final demand services crept up by 0.1 percent in December after climbing by 0.5 percent in November.
Prices for transportation and warehousing services declined by 0.4 percent, partly offsetting 0.2 percent increases in prices for trade and other services.
Compared to the same month a year ago, producer prices were up by 1.6 percent in December, reflecting an acceleration from the 1.3 percent increase in November. The annual rate of growth in core producer prices held at 1.6 percent.
Next Wednesday, the Labor Department is scheduled to release its more closely watched monthly report on consumer price inflation.
by RTT Staff Writer
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