Producer Price Index Rises, Signals Pipeline Inflation

The Bureau of Labor Statistics on Jan. 30 reported the Producer Price Index rose 0.5% in December, with machinery and equipment wholesale prices accounting for about 40% of the gain. Core final-demand PPI goods increased 3.7% year-over-year and wholesale prices excluding food, energy and trade services rose 3.5% for the year, which analysts say indicates ongoing pipeline pressure for consumer inflation.