Prices fell 0.2 percent from November. Economists were looking for a decline of 0.1 percent.
Excluding food and energy prices, prices climbed by just 0.1 percent, which was lower than the 0.2 percent climb forecasted.
Year-over-year, headline producer price inflation climbed by 1.3 percent.
During the December meeting of the Federal Open Market Committee, the Fed said that it would use unemployment rate and inflation rate thresholds to help guide monetary policy.
The inflation rate threshold was 2.5 percent. This puts today's low