#USPPIJump US PPI Jump: Inflation "Stickier" Than Expected?
โThe latest data from December 2025 is out, and itโs a "flashing red light" for the markets. US producer prices jumped significantly, driven by a surge in service costs and the reality of tariff pass-throughs.
โ๐ Key Figures (December 2025)
โThe numbers blew past analyst expectations across the board:
โHeadline PPI: Rose 0.5% MoM (Expected: 0.2%). This is the largest gain in five months.
โCore PPI (Excl. Food & Energy): Surged 0.7% (Expected: 0.2%).
โAnnual PPI: Held steady at 3.0%, defying hopes for a slowdown to 2.7%.
โCore Annual PPI: Accelerated to 3.3% (up from 3.0% in Nov).
โ๐ Whatโs Driving the Surge?
โServices Spike: A 0.7% jump in services accounted for the bulk of the increase, with machinery and equipment wholesaling margins rising a massive 4.5%.
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โGoods Divergence: While goods remained flat overall, nonferrous metals and natural gas rose, offset only by a 14.6% plunge in diesel fuel prices.
โโ๏ธ Market & Policy Impact
โThe Federal Reserve: This "hot" data validates the Fed's recent decision to hold rates at 3.50%โ3.75%. Any hopes for near-term rate cuts are fading as the Fed shifts focus back to price stability.
โCrypto & Stocks: Stock futures edged lower while Treasury yields and the USD rose. For assets like $BTC, $ETH, and $SOL, higher yields often signal a "risk-off" environment in the short term.
โ๐ก๏ธ Strategy Note
โInflation isn't cooling as fast as the "pivot" narrative suggested. In a high-inflation, high-yield environment, liquidity is king. Watch for volatility in
$XRP and
$BNB as the market re-prices the "higher-for-longer" interest rate reality.
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