December US Producer Price Index, Core PPI Rise Much More Than Expected

08:39 AM EST, 01/30/2026 (MT Newswires) -- The US Producer Price Index rose by 0.5% in December following a 0.2% increase in November, well above the 0.2% gain expected in a survey compiled by Bloomberg.

Energy prices fell by 1.4% in the month, while food prices declined by 0.3%.

After excluding food and energy prices, core PPI jumped by 0.7%, above the 0.2% gain expected and following a flat reading in the previous month.

Final demand goods were flat in the month, while final demand services rose by 0.7%, with transportation services up 2.8%.

PPI was up 3% year-over-year in December, the same as in November, while core PPI rose by 3.3% year-over-year after a 3.1% gain in November.

The monthly producer price index, or PPI, reported by the Bureau of Labor Statistics measures the index level of prices received by producers for products such as energy, food, vehicles, and services. The core measure, excluding the volatile food and energy components, is a measure of underlying inflation.

Sharply higher prices are a sign of demand, but an increase at the producer level without a pass-through to the consumer level would suggest smaller profits at the retail level. As a result, the stock reaction depends on the movements at both levels. Higher inflation is generally a negative for bonds.

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