Inflation, as measured by the producer price index, rose 3% the year ending in December, the Bureau of Labor Statistics reported Friday.
The report indicates that inflation tracked by the PPI still remains a full percentage point above the Federal Reserve‘s target.
Economists have been examining producer price index reports and other inflation reports for indications that President Donald Trump’s tariffs have driven up certain prices or whether underlying price pressures are abating.
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On a month-to-month basis, the price index increased by 0.5%, more than was expected.
Core PPI inflation, which strips out volatile food and energy prices, rose to 3.3% on an annual basis. Core inflation rose 0.7% on a monthly basis, well above expectations.
Friday morning’s report on producer prices comes after the consumer price index
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