Inflation still slowing as producer prices rise below expectations
Jan 14, 2025
WASHINGTON >> 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. The moderation in producer inflation reported by the Labor Department today did not change the view that the Federal Reserve would not cut interest rates again before the second half of this year amid labor market resilience and the threat of potentially inflation-boosting tariffs on imported goods by President-elect Donald Trump’s incoming administration.