Investing.com - Producer price inflation in the U.S. fell for the first time in four months in December, while core prices declined unexpectedly, official data showed on Tuesday.
The data underlined expectations that the Federal Reserve can be patient on future rate hikes given that inflation remains stable.
Producer prices declined by a seasonally-adjusted 0.2% last month, according to the Bureau of Labor Statistics, worse than forecasts for a drop of 0.1%.
Year-over-year, the producer price index rose 2.5%, in line with expectations.
The core producer price index slipped by a seasonally-adjusted 0.1%, disappointing forecasts for a gain of 0.2%.
Core producer prices rose at an annualized rate of 2.7% last month, below expectations for a 2.9% increase.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.