Wholesale prices in December rose less than expected, with the producer price index (PPI) increasing by just 0.2%, below the 0.4% forecast.

Excluding food and energy, the core PPI remained flat, suggesting that inflation pressures eased.

On an annual basis, the PPI rose 3.3%, up from 1.1% in 2023.

The report indicates a slowdown in inflation, but likely not enough to prompt an immediate Federal Reserve rate cut.

Stock market futures surged, and Treasury yields fell after the release, CNBC has reported.

The report is one of two key inflation measures before the Fed’s upcoming decision on interest rates.

Written by B.C. Begley