Producer Prices Rise 0.5% In December, BLS Reports
Bureau of Labor Statistics says PPI rose 0.5% in December and 3.0% year-over-year, with services up 0.7%.
Overview
The Bureau of Labor Statistics reported on Jan. 30, 2026 that the producer price index rose 0.5% from November to December 2025 and was up 3.0% from December 2024.
Services prices increased 0.7% in December, the largest monthly rise since July, while goods prices were unchanged month-to-month and up 2.5% year-over-year, according to BLS data.
The Federal Reserve voted to hold its benchmark interest rate unchanged at its Jan. 29, 2026 meeting, with officials citing lingering inflation above the 2% target, according to the Fed statement.
Core PPI, which excludes food and energy, rose 0.7% month-to-month and 3.3% year-over-year, which is 1.3 percentage points above the Fed’s 2% target, according to BLS data.
Economists said the delayed PPI release—more than two weeks late after a 43-day federal government shutdown last fall—will be scrutinized for signs that President Donald Trump's double-digit import taxes have pushed prices higher ahead of the March 17-18, 2026 FOMC meeting.
Analysis
Center-leaning sources report this story neutrally, focusing on Labor Department data and economists’ reactions without loaded rhetoric. They present concrete figures (PPI rise, services up 0.7%), note context (shutdown delay, Fed rate hold), and attribute evaluations to economists (e.g., modest impact of import taxes), keeping editorial framing minimal.
Sources (3)
FAQ
The Producer Price Index (PPI) measures the average change over time in selling prices received by domestic producers for their output, serving as an indicator of inflation at the wholesale level.
The PPI for final demand rose 0.5% month-over-month from November to December 2025 and 3.0% year-over-year from December 2024. Services prices increased 0.7%, goods prices were unchanged month-to-month and up 2.5% year-over-year, and core PPI (excluding food and energy) rose 0.7% month-to-month and 3.3% year-over-year.
The PPI release was delayed more than two weeks due to a 43-day federal government shutdown last fall.
The Fed held its benchmark interest rate unchanged on January 29, 2026, citing inflation above the 2% target. Core PPI at 3.3% year-over-year is 1.3 points above the target, and the data will be scrutinized ahead of the March 17-18, 2026 FOMC meeting.
Economists are examining the data for signs that President Donald Trump's double-digit import taxes have pushed producer prices higher.
History
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