The BLS has released the December Producer Price Index Report. (historical releases)
The Producer Price Index for final demand fell 0.1 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved down 0.1 percent in November and 0.4 percent in October. (See table A.) On an unadjusted basis, the index for final demand rose 1.0 percent in 2023 after increasing 6.4 percent in 2022.
If the PPI is really a forerunner of consumer inflation, then CPI should continue to ease, as PPI has nearing same rate as CPI in the periods outlined below.
I would hope the drops in food and energy will continue, or at least stabilize. I suspect energy will creep up in the coming months, as this is a seasonal lull, according to previous December reports. Those same reports suggest a seasonal lull for foods.
I guess it is important to find the good news and celebrate... however fleeting it might be.
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