US wholesale inflation accelerated more than expected in December, pressuring global risk assets and triggering a sell-off in cryptocurrencies.
Data from the US Bureau of Labor Statistics showed the Producer Price Index (PPI) for final demand rose 0.5% month-over-month, the largest increase since July and well above market expectations of 0.2%. On a year-over-year basis, PPI held steady at 3.0%, compared with forecasts near 2.7%.
Core measures also strengthened. Core PPI excluding food, energy, and trade services increased 0.4%, while the broader ex-food and energy index advanced 0.7%, signaling persistent underlying inflation pressure.
Services prices climbed 0.7%, led by a 1.7% jump in final-demand trade services, reflecting higher margins among wholesalers and retailers. Goods prices were largely flat, with energy declines offsetting gains in other categories.
Following the release, Bitcoin dropped below $83,000, while Ethereum and major altcoins extended losses. The data reinforced expectations that the Federal Reserve may keep interest rates elevated for longer, tightening liquidity conditions for risk assets.