Are consumer prices cooling?

Wholesale prices dropped below investor expectations in December but remained high and continued to squeeze producers as core prices were up and wholesale prices down on a monthly basis, according to the Bureau of Labor Statistics. The Producer Price Index (PPI), which measures prices for goods and services before reaching consumers, fell by 0.5%, undercutting investor expectations, with annualized inflation falling to 6.2% from 8.1% from October’s annualized rate, according to the monthly PPI. Food and energy indices climbed 0.2% to close out 2022 with an annualized rate of 6.0%. Various foods, including eggs, continued to run hot climbing 24.5% to end the year up 191.8%. Other mainstays, such as fresh and dry vegetables, were up 92.3% and pastas up 20.4%. Meats tended to stay steady, with the exception of beef, which fell 7.8% while turkey prices grew by 35.6%. The cost of energy continued to decline as the overall energy index fell 7.9%, due to a 13.4% monthly decline in gasoline prices and 12.9% monthly decline in the cost of liquified petroleum gas, according to the BLS. Other hot-running prices:  Heating oil and diesel up 37% and 20.4% on an annual basis; residential natural gas and electricity costs were up 16.2% and 12.3%. Consumer prices showed signs of cooling in December, fueling investor speculation as to whether the Federal Reserve would “pivot” from its aggressive interest rate hikes designed to slow inflation. BlackRock and Fidelity asset managers expressed doubts that inflation would end this year. BlackRock analysts said that not even a recession would sway the Fed to lower interest rates. (Daily Caller 01/18/23) Wholesale Prices Drop Below Expectations, But Food Costs Skyrocket | The Daily Caller