FX.co ★ US Producer Prices Rise More than Expected

In December 2025, U.S. producer prices experienced their most significant rise in three months, increasing by 0.5% from the previous month. This uptick surpasses both the 0.2% increase recorded in November and market expectations, which had also forecasted a 0.2% rise. Within the services sector, prices made a notable recovery, climbing by 0.5% after having remained unchanged in November. This was largely driven by a substantial 4.5% increase in margins for machinery and equipment wholesaling. Conversely, the prices of goods remained stable following a 0.8% increase in the prior month, with nonferrous metals experiencing a sharp rise of 4.5%. Additional price increases were observed in residential natural gas, motor vehicles, soft drinks, and aircraft and aircraft equipment. However, there were notable price declines in diesel fuel, which sank by 14.6%, alongside decreases in gasoline, jet fuel, beef and veal, and iron and steel scrap. The Core Producer Price Index (PPI), which excludes volatile food and energy prices, rose by 0.7%, marking the largest increase since July, and exceeding projections of a 0.2% rise. Annually, headline producer inflation remained steady at 3%, defying expectations of a reduction to 2.7%. Meanwhile, core producer inflation accelerated, reaching 3.3%, up from 3%, and surpassed forecasts of 2.9%.