US PPI rises 0.2% in Dec ’24

The US Producer Price Index (PPI) for final demand increased by 0.2 per cent in December 2024, following gains of 0.4 per cent in November and 0.2 per cent in October, according to the Bureau of Labour Statistics. For the year, the index rose 3.3 per cent, compared to a 1.1 per cent rise in 2023.

The December growth was driven by a 0.6 per cent rise in final demand for goods, led by a 3.5 per cent surge in energy prices, while services remained flat. Gasoline prices jumped 9.7 per cent, with additional increases in residential electric power and meats. However, fresh and dry vegetable prices dropped 14.7 per cent.

Prices excluding food, energy, and trade services edged up 0.1 per cent, matching November’s pace.

Intermediate demand categories also reflected mixed trends. Processed goods prices rose 0.3 per cent, with gasoline up 9.7 per cent, while unprocessed goods saw a significant 3.2 per cent increase, driven by a 57.7 per cent surge in natural gas.

Stage-based intermediate demand data showed notable increases across stages 1 through 4, underpinned by higher costs for energy, transportation, and services like investment banking and retail property rents.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser