US producer prices rose sharply in December, with PPI up 0.5% mom, well above expectations of 0.2% mom. The increase was driven almost entirely by services, where prices climbed 0.7% mom on the month. In contrast, goods were flat.
Excluding food, energy, and trade services, core PPI rose 0.4%, marking the eighth consecutive monthly increase.
On an annual basis, PPI held at 3.0% yoy, above expectations of slowing to 2.7% yoy.
