The PPI for final demand jumped 0.5% last month, the biggest rise since July, after an unrevised 0.2% gain in November, the Labor Department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast the PPI climbing 0.2%.
In the 12 months through December, the PPI increased 3.0% after rising by the same margin in November. The PPI advanced 3.0% in 2025 after rising 3.5% in 2024.
A 0.7% increase in services accounted for the rise in the PPI last month. They were driven by a 1.7% jump in margins for final demand trade services, which made up two-thirds of the increase in services.
The cost of services less trade, transportation and warehousing increased 0.3%, while prices for transportation and warehousing services rose 0.5%. Portfolio management fees increased 2.0% after gaining 1.4%. Airline fares soared 2.9% while wholesale prices of hotel and motel rooms surged 7.3%.
Producer goods prices were unchanged in December after increasing 0.8% in November. Energy prices dropped 1.4% after rebounding 3.7% in November. They were held down by lower gasoline prices. Food prices fell 0.3% amid a 20.4% plunge in the cost of fresh and dry vegetables.