US producer inflation rose less than analysts expected in December, according to government data released Tuesday, on the back of cooler food costs.

The producer price index (PPI) rose 0.2 percent last month, said the Department of Labor, below a consensus estimate of 0.4 percent according to Briefing.com.

The move will likely bring some relief to markets, with observers monitoring the progress of lowering inflation -- given that this has a bearing on central bank policy.

On Tuesday, the Labor Department noted that December's increase could be traced to an advance in the index for goods.