The Producer Price Index for final demand rose 0.5% in December, seasonally adjusted, according to delayed data released by the U.S. Bureau of Labor Statistics. The increase followed more modest gains of 0.2% in November and 0.1% in October, signaling renewed upward pressure at the wholesale level.
Year-over-year, final demand prices rose 3.0% in 2025, easing slightly from a 3.5% increase in 2024. The December advance was driven entirely by services, where prices climbed 0.7%; the largest monthly increase since July. Prices for final demand goods were unchanged during the month, underscoring the divergence between goods disinflation and persistent services inflation.
Excluding food, energy, and trade services, the core measure of final demand rose 0.4% in December, marking the eighth consecutive monthly increase. That core index advanced 3.5% in 2025, nearly matching the 3.6% gain recorded in 2024.
The data suggest that while headline inflation has moderated from its peak, underlying price pressures, particularly in services, remain sticky. For policymakers, the continued rise in core producer prices may complicate the case for rapid easing, especially as services costs often feed through more slowly but persistently into consumer inflation.
The post Wholesale Inflation Firms in December as Services Prices Accelerate appeared first on Connect Money.
