US producers increased their prices last year at the fastest rate in the last ten years, but the inflationary surge might be cooling down.
- The Producer Price Index for final demand grew by 9.7% in 2021, the largest annual increase since data were first calculated in 2010.
- In December alone, goods and services providers increased their prices by 0.2%, a slower than 1.0% increase in November and October’s 0.6%.
- PPI fell in December attributable to a 6.1% decrease in gasoline prices, with prices for meats, gas fuels, fresh and dry vegetables, diesel fuel, and basic organic chemicals are also falling.
- These producer prices are passed onto the final consumers, who experienced an increase in inflation at the fastest rate in 20 years previous month.
Even though easing producer price growth is a good sign, it is uncertain when inflation in consumer prices will start to fall.
DXY down -0.24%, EUR USD up +0.21%Source: US Bureau of Labor Statistics