Producer Prices Declined 0.2 percent in December

Producer prices declined 0.2 percent in December, seasonally adjusted, after rising 0.1 percent in November, according to the U.S. Bureau of Labor Statistics. Producer prices rose 2.5 percent on an un-adjusted basis for the twelve months of 2018.

The index for final demand goods moved down 0.4 percent in December, mirroring last month’s decline. The index for final demand energy was the biggest drag, dropping 5.4 percent, while prices for final demand goods less foods and energy grew 0.1 percent.

Prices for final demand services edged down 0.1 percent. Prices for final demand transportation and warehousing decreased 0.2 percent in December after increasing 1.2 percent in November. Prices for final demand trade declined 0.3%.

Read the BLS release.


About Author

Hugo Dante is an economist in Washington, D.C. He was previously an economic research specialist at ABA. In addition to the ABA Banking Journal, his writing has appeared in The Hill, The National Interest and Townhall. Views expressed here are his own.