December PPI
Updated: 30-Jan-26 09:25 ET





Highlights

• The Producer Price Index for final demand increased 0.5% month-over-month (Briefing.com consensus: 0.2%), with the index for final demand services up 0.7%.
• The index for final demand, excluding food and energy, jumped 0.6% month-over-month (Briefing.com consensus: 0.3%).
• On a year-over-year basis, the index for final demand was up 3.0%, unchanged from November, while the index for final demand, excluding food and energy, was up 3.2% versus 3.0% in November.

Key Factors

• The index for final demand goods was unchanged following a 0.8% increase in November.
• The index for final demand services was up 0.7%, which is the largest increase since July. Two-thirds of the increase was due to a 1.7% increase in margins for final demand trade services (meaures changes in margins received by wholesalers and retailers).
• The index for processed goods for intermediate demand moved down 0.1% after a 0.5% increase in November.
• The index for unprocessed goods for intermediate demand jumped 2.3%, with more than three-fourths of the increase traced to prices for unprocessed energy materials.

Big Picture

• The key takeaway from the report is the lingering 3-handle on the year-over-year changes, which will keep alive concerns about pass-through (to the consumer) and possible margin compression (for wholesalers and retailers) if they don't pass through their higher costs.

Category	DEC	NOV	OCT	SEP	AUG
Final Demand	0.5%	0.2%	0.1%	0.7%	-0.2%
Core (excluding ...)
Food and Energy	0.6%	0.0%	0.3%	0.5%	-0.2%
Food, Energy, and Trade	0.4%	0.2%	0.7%	0.2%	0.3%
Final Demand Goods
Total	0.0%	0.8%	-0.4%	0.8%	0.2%
Energy	-1.4%	3.7%	-3.3%	2.9%	-0.3%
Finished Goods	0.0%	1.0%	-0.7%	1.0%	0.1%
Final Demand Services
Total	0.7%	0.0%	0.3%	0.6%	-0.3%
Trade	1.7%	-0.6%	-0.8%	1.5%	-2.1%
Intermediate Demand
Processed	-0.1%	0.5%	-0.3%	0.3%	0.4%
Unprocessed	2.3%	0.5%	-1.3%	0.0%	-1.7%
Services	0.7%	0.1%	0.3%	0.3%	0.1%