The Producer Price Index (PPI) for final demand increased 0.5% in December 2025, the US Bureau of Labor Statistics reported, building on smaller gains in November and October. On an annual basis, producer prices rose 3.0% over 2025, down from a 3.5% increase in 2024.
The December increase was driven by a 0.7% rise in prices for final demand services, while prices for final demand goods were unchanged. The index excluding foods, energy, and trade services also climbed, marking its eighth consecutive monthly increase. The release was delayed by the federal government shutdown, but showed that underlying producer price pressures remained elevated at year’s end. The BLS writes:
The Producer Price Index for final demand increased 0.5 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in November and 0.1 percent in October. On an unadjusted basis, the index for final demand rose 3.0 percent in 2025 after moving up 3.5 percent in 2024.
The December increase in prices for final demand can be traced to a 0.7-percent advance in the index for final demand services. Prices for final demand goods were unchanged.
The index for final demand less foods, energy, and trade services moved up 0.4 percent in December, the eighth consecutive increase. Prices for final demand less foods, energy, and trade services rose 3.5 percent in 2025 following a 3.6-percent advance in 2024.
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