Today, we received new information on producer prices. The data show a slowdown in producer price increases in December, relative to the month before, and the lowest monthly increase in the Producer Price Index (PPI) since November 2020.
Monthly inflation results are always volatile, and this report was driven in large part by a reduction in highly volatile energy and food prices, but also reflects potential improvement in prices for supply-chain related goods and services.
Even as the economy has had a historic recovery, we continue to face challenges with prices driven by supply chain disruptions around the world. Today's report underscores the importance of the Administration's work on supply chains and to fight the pandemic here at home and around this world.