Investing.com - Producer price inflation in the U.S. rose in line with expectations in December, while core prices inched up modestly, official data showed on Wednesday.
In a report, the Bureau of Labor Statistics said that producer prices increased by a seasonally adjusted 0.4% last month, matching forecasts, after falling 0.1% in November.
Year-over-year, the producer price index rose at an annualized rate of 1.2% in December, above expectations for a 1.1% gain and up from 0.7% in the preceding month.
The core producer price index eased up 0.3% last month, above expectations for a 0.1% increase, after rising 0.1% in November. Core produces prices rose at an annualized rate of 1.4% in December, compared to forecasts for a 1.3% gain and after climbing 1.3% in the preceding month.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Following the release of the data, the U.S. dollar held to gains against the euro, with EUR/USD shedding 0.65% to trade at 1.3589.
Meanwhile, the outlook for U.S. equity markets remained higher. The Dow Jones Industrial Average futures indicated a gain of 0.1% at the open, S&P 500 futures pointed to a rise of 0.15% and Nasdaq 100 futures indicated an increase of 0.3%.