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Based on the Bureau of Labor Statistics (BLS) data released on January 30, 2026, for December 2025, producer prices experienced a notable jump, driven primarily by services.
Final Demand PPI (Monthly): Increased 0.5% in December 2025 (seasonally adjusted), accelerating from a 0.2% increase in November and beating market expectations.
Annual Increase: Prices for final demand rose 3.0% for the 2025 calendar year (unadjusted).
Services Jump: A 0.7% rise in final demand services accounted for most of the increase, largely due to a 1.7% jump in margins for trade services (wholesaling and retailing).
Core PPI: The core PPI (excluding food, energy, and trade) showed a significant increase, reflecting broad-based inflationary pressure.
Goods: Prices for final demand goods remained unchanged in December following a 0.8% increase in November.
Key Takeaways
The data indicates that wholesale inflation remains "sticky" and continues to run above the Federal Reserve's 2% target.
The surge in service margins (particularly machinery and equipment wholesaling) was the primary driver for this month's, hotter-than-expected, PPI.