US Producer Price Index Jumps 0.5 Percent in December Marking Largest Monthly Increase Since July

The Producer Price Index rose 0.5 percent in December as services costs surged. This data signals inflation pressure while the Federal Reserve holds rates.

The US USUSProducer Price Index for final demand increased by 0.5 percent in December, marking the largest monthly gain since July, according to the USDepartment of Labor's Bureau of Labor Statistics. This increase exceeded economists' expectations, as those polled by Reuters had forecast the index climbing only 0.2 percent for the month. In the 12 months through December, the producer price measure increased 3.0 percent, which was unchanged from the November reading. Overall, the index advanced 3.0 percent in 2025 following a 3.5 percent rise in 2024.
A worker prepares steel to be automatically welded at HCC, a company that uses parts to make combines, at the factory in Mendota, Illinois, U.S., February 21, 2025. REUTERS/Vincent Alban
A worker prepares steel to be automatically welded at HCC, a company that uses parts to make combines, at the factory in Mendota, Illinois, U.S., February 21, 2025. REUTERS/Vincent Alban
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