US producer prices soar 9.7% in December, highest on record

Core producer prices, excluding food, energy, trade rise 6.9% year-on-year, hitting all-time high.

US producer prices soar 9.7% in December, highest on record

US producer prices jumped 9.7% year-on-year in December 2021, its highest level on record, according to figures released by the Labor Department on Thursday.

The producer price index, which measures changes in the price of goods and services from a producer perspective, was expected to show an annual increase of 9.8% last month. The November figure was revised up to 9.8% from 9.6%.

The rise in December marked "the largest advance since 12-month data were first calculated in 2010," the Labor Department said in a statement.

The producer price index rose 0.2% in December from the previous month, coming lower than the market expectation of 0.4%. The monthly increase in November was also revised up to 1% from 0.8%.

Core producer prices, which exclude food, energy and trade, moved up 0.4% in December from the previous month.

The core producer price index in December increased 6.9% on an annual basis, also the highest on record.

Consumer prices soared 7% year-on-year in December, its largest annual increase since June 1982, the Labor Department said on Wednesday.