US producer prices revised down for December

The decline in the US Producer Price Index (PPI) in December was revised from 0.1 percent to 0.2 percent. The US Department of Labor published its annual update on the seasonal adjustment of producer inflation. Accordingly, the change in the PPI, which was previously announced as a 0.1 percent decrease for December 2023, was revised to a 0.2 percent decrease. The decline in the PPI data for October and November of last year was maintained at 0.4 percent and 0.1 percent, respectively. Analysts noted that the consumer inflation data that came in above expectations yesterday shifted the possibility of the US Federal Reserve (Fed) starting to cut interest rates to the second half of 2024, but the downward revision in producer and consumer prices for December was a positive development towards a decrease in rates. Last week, the increase in the US Consumer Price Index (CPI) in December was reduced from 0.3 percent to 0.2 percent. According to data released yesterday in the country, the CPI had exceeded market expectations in January, rising by 0.3 percent on a monthly basis and 3.1 percent on an annual basis. The US PPI data for January will be released on Friday. Seasonal adjustment factors are recalculated each year in the US to reflect price movements in the calendar year. Routine annual calculations can cause revisions in seasonally adjusted indices for the past 5 years.