On a 12-month basis, final demand prices remained elevated but reflected signs of slowing inflation compared with the previous year, suggesting a complex mix of cost pressures across different industries. Changes in intermediate demand indexes also pointed to ongoing but varied pricing trends earlier in the production pipeline. The BLS writes:
PRODUCER PRICE INDEXES — JANUARY 2026
The Producer Price Index for final demand increased 0.5 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.4 percent in December 2025 and 0.2 percent in November. On an unadjusted basis, the index for final demand rose 2.9 percent for the 12 months ended January 2026.
The January increase in final demand prices can be traced to a 0.8-percent advance in the index for final demand services. In contrast, prices for final demand goods declined 0.3 percent.
The index for final demand less foods, energy, and trade services moved up 0.3 percent in January, the ninth consecutive increase. For the 12 months ended in January, prices for final demand less foods, energy, and trade services rose 3.4 percent.
Final Demand
Final demand services: The index for final demand services advanced 0.8 percent in January, the largest increase since a 0.9-percent rise in July 2025. Most of the increase can be traced to margins for final demand trade services, which jumped 2.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services rose 1.0 percent, while the index for services less trade, transportation, and warehousing was unchanged.
Product detail (services): Over 20 percent of the January increase in prices for final demand services is attributable to a 14.4-percent jump in margins for professional and commercial equipment wholesaling. Indexes for apparel, footwear, and accessories retailing; chemicals and allied products wholesaling; bundled wired telecommunications access services; health, beauty, and optical goods retailing; and food and alcohol retailing also increased. Conversely, prices for system software publishing fell 12.2 percent. Indexes for guestroom rental and apparel wholesaling also declined.
Final demand goods: Prices for final demand goods decreased 0.3 percent in January, the largest drop since a 0.7-percent decline in March 2025. Leading the decrease, the index for final demand energy fell 2.7 percent. Prices for final demand foods declined 1.5 percent. In contrast, the index for final demand goods less foods and energy advanced 0.7 percent.
Product detail (goods): Nearly 80 percent of the January decline in final demand goods prices can be traced to gasoline, which fell 5.5 percent. Prices for chicken eggs, electric power, gas fuels, fresh fruits and melons, and ethanol also moved lower. Conversely, the index for search, detection, navigation, and guidance systems rose 15.5 percent, while prices for nonferrous metals and pork also increased.
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