Inflation, as measured by the producer price index, rose three-tenths of a percentage point to 3.3% for the year ending in December, hinting that the economy may not yet have vanquished price pressures.

The Labor Department reported Tuesday that its producer price index — which tracks inflation before it hits consumers — rose 0.2% last month from November, down from a 0.4% gain the month before. Compared with a year earlier, producer prices rose 3.3%, biggest jump since February 2023 and up from a 3% gain in November.

The first of a pair highly anticipated inflation reports will land on Tuesday, with markets on edge and traders betting on little-to-no easing by the Federal Reserve in 2025. With a solid economic and labor market backdrop,

The Producer Price Index for final demand advanced 0.2 percent while the consensus ahead of the release was a rise of 0.4 percent. Final demand prices rose 0.4 percent in November and 0.2 percent in October according to the U.S. Bureau of Labor Statistics. The index for final demand increased 3.3 percent in 2024 after moving up 1.1 percent in 2023.

US stocks gained after cooler-than-expected producer price index data soothed inflation concerns. The numbers on Tuesday showed wholesale inflation rose 0.2% in December on a monthly basis, compared to an estimated 0.4% increase. The reading climbed 3.3% from a year ago, below the projected 3.5% gain.

Where prices did climb — warehousing and transportation — points to an inventory build. Upcoming CPI will make the inflation picture clearer.

Producer prices rose less than expected in Dec, easing Fed's inflation concerns and providing relief to markets. Core PPI also flattened.

U.S. producer prices rose less than expected in December as higher costs for goods were partially offset by stable services prices, suggesting inflation remained on a downward trend after progress had stalled in recent months.

Investors are gearing up for December's crucial consumer price index to determine the direction of Fed policy.

Wholesale prices rose less than expected in December, a positive sign for the economy amid recent market fears that inflation isn't falling as quickly as hoped to the Federal Reserve's 2% target.

The report from the U.S. Bureau of Labor Statistics could help ease market concerns that inflation is proving stubborn.

Producer output (factory gate) prices rose by 0.1% in the year to December 2024. This is up from a revised fall of 0.5% in the year to November (Figure 1). Monthly output prices also rose by 0.1% in December 2024, following a revised monthly inflation rate of 0.4% in November (Table 1).