Wholesale prices rose less than expected in December, a positive sign for the economy amid recent market fears that inflation isn't falling as quickly as hoped to the Federal Reserve's 2% target. Tuesday's report from the Bureau of Labor Statistics showed that its producer price index (PPI) — which tracks the price changes companies see — rose 3.

Wholesale prices rose a seasonally adjusted 0.2% in December, half of what Wall Street forecasters believe would jump while the rate for the core producer price index over the same period remained flat,

U.S. PPI rose 0.2% in December, below forecasts, signaling easing wholesale inflation pressures. Core PPI was flat, raising optimism about cooling costs.

Inflation picked up in late 2024, fueled by an increase in gas prices, the latest sign of stalled improvement on lowering prices as President-elect Donald Trump prepares to take office. The consumer price index increased by 2.

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.

Excluding the volatile food and energy categories, so-called core inflation declined to 3.2%, after remaining stuck at 3.3% for three months in a row.

US inflation continued to heat up at the end of 2024. The consumer price index rose by 2.9% year over year in December, above November's 2.7% rate.

US consumer inflation rose for a third straight month in December as energy prices jumped but a widely watched measure eased slightly, raising hopes that underlying inflation may be moderating.