U.S. Inflation Pressures Persist as Producer Prices Rise 0.2% in December

December sees a 0.2% increase in U.S. producer prices driven by energy costs, amid mixed stock market reactions and inflation forecasts.

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This story was covered by 7 sources. This shows the distribution of these sources: left-leaning (blue), center (gray), and right-leaning (red).

Business

Mostly Reliable

The underlying sources generally maintain reliability but have, at times, included opinion pieces, propaganda, or minor inaccuracies. While typically factual, there may be occasional editorialization or subjective interpretation.

Balanced

Summary

A summary of the key points of this story, verified by multiple sources.

The U.S. producer price index rose 0.2% in December, causing mixed reactions in stock markets. Inflation pressures persist, with the S&P 500 up 0.1% and the Dow rising 0.5%. Year-on-year, the PPI increased by 3.3%, maintaining expectations of steady interest rates from the Federal Reserve. Investors await the upcoming consumer price index report for clearer future rate projections. Stocks fluctuated as concerns over tariffs and potential rate cuts strain market optimism. Eli Lilly’s disappointing forecast contributed to market hesitance. Market valuations remain above long-term averages, signaling possible volatility ahead.

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From the Right

A recap of the main views or arguments shared by right-leaning sources.

Producer prices increased moderately, indicating resilience in the labor market and a potential pause in interest rate cuts by the Federal Reserve.
The rise in the Producer Price Index (PPI) reflects the low prior year's prices dropping out of calculations, suggesting inflationary pressure may remain subdued for now.
Concerns are growing regarding the Biden Administration's policies potentially exacerbating inflation, as evinced by rising consumer inflation expectations.

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Highlights (4)

Excerpts from the underlying articles that best reflect each outlet's unique perspective on this story.

While the overall market showed some resilience with a modest rise in the S&P 500 and Dow, the disappointing performance of Eli Lilly and a mixed bag of index results underscore the ongoing challenges that persist beneath the surface of seemingly positive economic indicators.
How major US stock indexes fared Tuesday, 1/14/2025
Associated Press
Reliable
The underlying sources consistently report facts with minimal bias. They demonstrate high-quality journalism and accuracy across multiple articles.
·Center
The upcoming inflation report is poised to significantly sway stock market direction, underscoring the fragile balance investors must navigate amidst fluctuating economic indicators.
JPMorgan’s view on Wednesday's inflation reading and how the stock market will react
CNBC
Reliable
The underlying sources consistently report facts with minimal bias. They demonstrate high-quality journalism and accuracy across multiple articles.
·Center
The recent market activity underscores the persistent uncertainty surrounding inflation, interest rates, and the Federal Reserve's policies, with a disappointing earnings season looming that could threaten further equity gains.
Dow Rises 220 Points, While S&P, Nasdaq End Flat
Newsmax
Mixed Reliable
The underlying sources have a mixed track record. They provide accurate information in some cases but are known to inject bias, sensationalism, or incomplete reporting. Read these stories cautiously and cross-check claims when possible.
·Right
While producer prices rose moderately in December, it is unlikely this will alter the prevailing sentiment that the Federal Reserve is poised to maintain interest rates amid a robust labor market.
US producer prices rise moderately in December
Fox Business
Mostly Reliable
The underlying sources generally maintain reliability but have, at times, included opinion pieces, propaganda, or minor inaccuracies. While typically factual, there may be occasional editorialization or subjective interpretation.
·Leans Right