Investing.com - Producer price inflation in the U.S. fell for the third consecutive month in December, while core prices eased up slightly, official data showed on Tuesday.
In a report, the Bureau of Labor Statistics said that producer prices fell by a seasonally adjusted 0.2% in December, compared to expectations for a 0.1% decline, after falling 0.8% in November.
Year-over-year, the producer price index rose at an annualized rate of 1.3% last month, below expectations for a gain of 1.4%. PPI rose at an annualized rate of 1.5% in November.
The core producer price index eased up 0.1% in December, in line with expectations after rising 0.1% in November.
Core produces prices rose at an annualized rate of 2% last month, below forecasts for a 2.1% increase, after climbing 2.2% in November.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Following the release of the data, the U.S. dollar held on to gains against the euro, with EUR/USD dipping 0.42% to trade at 1.3326.
Meanwhile, U.S. stock future indices remained lower. The Dow Jones Industrial Average futures pointed to a loss of 0.3% at the open, S&P 500 futures pointed to a drop of 0.4%, while the Nasdaq 100 futures pointed to a decline of 0.3%.
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