US EditionUS Producer Prices Accelerate in December on Services
U.S. producer prices rose 0.5% in December with a 0.7% increase in trade services margins, marking the fastest monthly rise in three months, the Labor Department reported.
- On Friday, the U.S. Bureau of Labor Statistics reported the Producer Price Index for final demand climbed 0.5% in December, the fastest rise in three months and above economists' 0.3% forecast.
- Driven largely by services costs, the report said businesses began passing on higher import costs amid sweeping import tariffs introduced by President Donald Trump, with Federal Reserve Chair Jerome Powell saying tariffs contributed to recent inflation.
- Two-Thirds of the broad-based rise was traced to a 1.7 surge in margins for final demand trade services; over 40% came from a 4.5 rise in machinery‑and‑equipment wholesaling margins.
- The Federal Reserve held rates this week at its first 2026 meeting, citing lingering inflation concerns, and the report will be an unwelcome one for the Fed and the White House as inflation remains a top concern for consumers.
- Unprocessed goods for intermediate demand moved sharply, with a 2.3 jump led by a 34.8% surge in natural gas, while service prices are up 3.2% last year.
58 Articles
58 Articles
The US producer price index rose by half a percent in December from November. The increase exceeded expectations and suggests that Jerome Powell's successor as Fed chairman will have a tough time keeping up with demands to cut interest rates. The year-on-year price increase in December was 3 percent.
Why Americans Are Still Feeling The Inflation That Began In 2021—And Won’t Break Even Until Mid-2027
By Robert Romano Producer inflation for goods was unchanged in December, according to the latest data compiled by the U.S. Bureau of Labor Statistics (BLS), including food and energy, which decreased 0.3 percent and 1.4 percent respectively. That is fairly good news, but it is somewhat overshadowed by overall producer prices increasing 0.5 percent, more than expected, including goods besides food and energy increasing 0.4 percent and services in…
WRAPUP 1-US producer prices post biggest gain in five months in December
The larger-than-expected rise in the Producer Price Index last month reported by the Labor Department on Friday was driven by a surge in services, mostly trade services, which measure changes in margins received by wholesalers and retailers.
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