Materials Drop As Producer Price Inflation Levels Off -- Materials Roundup

Producers of metals and other raw materials gave back some of their recent gains after a reported easing of wholesale inflation.

The Labor Department's producer-price index rose 0.2% in December from November, the slowest pace since November 2020 and down sharply from a revised 1.0% the prior month, which could indicate easing price pressures in the U.S. supply chain.

One money manager said inflationary pressures are likely to persist for months. "It's hard to see that going away in the short run barring a pretty catastrophic recession or something like that," said Eric Marshall, president of money manager Hodges Capital.

Gold futures slipped for the first time in five sessions. The price of lithium for electric car batteries is set to "skyrocket," said analysts at Rystad Energy.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

01-13-22 1622ET