Washington: US producer prices were up more than expected in December, with the Producer Price Index (PPI) rising 3% year-on-year, according to data released Friday by the Bureau of Labor Statistics. The figure exceeded expectations of 2.7% for the month, and followed a 3% increase in November. Meanwhile, month-on-month PPI rose 0.5%, surpassing expectations of a 0.3% rise.

According to Anadolu Agency, the December increase in prices for final demand is largely attributed to a 0.7% advance in the index for final demand services, while prices for final demand goods remained unchanged. The Bureau of Labor Statistics stated that two-thirds of the December rise in prices for final demand services can be traced to a 1.7% jump in margins for final demand trade services.

Furthermore, prices for final demand less foods, energy, and trade services rose 0.4%, marking the eighth consecutive increase. The bureau also noted that prices for final demand less foods, energy, and trade services rose 3.5% in 2025, following a 3.6% advance in 2024.

Core PPI, which excludes the volatile food and energy prices, increased by 0.7% month-on-month in December, surpassing forecasts of a 0.2% rise.