PPI Increase: The PPI grew by 3.3% in December compared to the same month last year. This indicates rising costs for producers. Expectations vs. Reality: The market expected a 3.4% increase (Est +3.4%), but the actual figure came in slightly lower at 3.3%. However, it is higher than the previous month's 3.0% growth (Prior +3.0%). Economic Implications: Inflation: A rising PPI can indicate future inflation as producers may pass on the increased costs to consumers. Monetary Policy: It could influence the Federal Reserve's decisions on interest rates, as higher inflation might prompt tighter monetary policy.