December 2025 Producer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Producer Price Index for final demand increased 0.5 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in November and 0.1 percent in October. (See table A.) On an unadjusted basis, the index for final demand rose 3.0 percent in 2025 after moving up 3.5 percent in 2024.

The December increase in prices for final demand can be traced to a 0.7-percent advance in the index for final demand services. Prices for final demand goods were unchanged.

The index for final demand less foods, energy, and trade services moved up 0.4 percent in December, the eighth consecutive increase. Prices for final demand less foods, energy, and trade services rose 3.5 percent in 2025 following a 3.6-percent advance in 2024.

Final Demand

Final demand services: The index for final demand services advanced 0.7 percent in December, the largest increase since moving up 0.9 percent in July. Two-thirds of the broad-based December rise in prices for final demand services can be traced to a 1.7-percent jump in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.) The indexes for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services also moved up, 0.3 percent and 0.5 percent, respectively.

Product detail: Over 40 percent of the December increase in prices for final demand services can be traced to a 4.5-percent rise in margins for machinery and equipment wholesaling. The indexes for guestroom rental; food and alcohol retailing; health, beauty, and optical goods retailing; portfolio management; and airline passenger services also advanced. Conversely, prices for bundled wired telecommunications access services fell 4.4 percent. The indexes for automotive fuels and lubricants retailing and for long-distance motor carrying also moved lower. (See table 2.)

Final demand goods: Prices for final demand goods were unchanged in December following a 0.8- percent increase in November. In December, a 0.4-percent advance in the index for final demand goods less foods and energy offset declines in prices for final demand energy and for final demand foods, which fell 1.4 percent and 0.3 percent, respectively.

Product detail: Within final demand goods in December, the index for nonferrous metals moved up 4.5 percent. Prices for residential natural gas, motor vehicles, soft drinks, and aircraft and aircraft equipment also increased. In contrast, the index for diesel fuel dropped 14.6 percent. Prices for gasoline, jet fuel, beef and veal, and iron and steel scrap also decreased.

Intermediate Demand by Commodity Type

Within intermediate demand in December, prices for processed goods edged down 0.1 percent, the index for unprocessed goods increased 2.3 percent, and prices for services advanced 0.7 percent. (See tables B and C.)

Processed goods for intermediate demand: Prices for processed goods for intermediate demand moved down 0.1 percent in December after rising 0.5 percent in November. A major factor in the decline was the index for processed energy goods, which fell 2.4 percent. Prices for processed foods and feeds decreased 1.3 percent. Conversely, the index for processed materials less foods and energy increased 0.7 percent. Prices for processed goods for intermediate demand rose 3.4 percent in 2025 following a 0.1-percent advance in 2024.

Product detail: Leading the December decline in prices for processed goods for intermediate demand, the index for diesel fuel dropped 14.6 percent. Prices for jet fuel, gasoline, agricultural chemicals and chemical products, and natural cheese (except cottage cheese) also fell. In contrast, the index for nonferrous mill shapes rose 2.6 percent. Prices for utility natural gas, electric power, and synthetic organic plasticizers also advanced.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand moved up 2.3 percent in December, the largest increase since jumping 5.8 percent in January. More than three-fourths of the December rise can be traced to prices for unprocessed energy materials, which advanced 5.5 percent. The index for unprocessed nonfood materials less energy moved up 2.6 percent. Conversely, prices for unprocessed foodstuffs and feedstuffs decreased 0.6 percent. The index for unprocessed goods for intermediate demand fell 0.3 percent in 2025 after rising 4.5 percent in 2024.

Product detail: A major factor in the December increase in prices for unprocessed goods for intermediate demand was the index for natural gas, which jumped 34.8 percent. Prices for raw milk, nonferrous metal ores, nonferrous scrap, slaughter poultry, and slaughter cows and bulls also advanced. In contrast, the index for slaughter hogs declined 10.1 percent. Prices for crude petroleum and for carbon steel scrap also fell.

Services for intermediate demand: The index for services for intermediate demand moved up 0.7 percent in December, the largest increase since rising 0.7 percent in July. Nearly seventy percent of the broad-based advance in December can be traced to prices for services less trade, transportation, and warehousing for intermediate demand, which climbed 0.7 percent. The indexes for trade services for intermediate demand and for transportation and warehousing services for intermediate demand also moved higher, 0.6 percent and 0.7 percent, respectively. Prices for services for intermediate demand rose 2.7 percent in 2025 following a 3.1-percent increase in 2024.

Product detail: Thirty percent of the December advance in the index for services for intermediate demand is attributable to a 10.1-percent increase in prices for gross rents for retail properties. The indexes for machinery and equipment parts and supplies wholesaling; deposit services (partial); portfolio management; guestroom rental; and courier, messenger, and U.S. postal services also moved higher. Conversely, prices for bundled wired telecommunications access services fell 4.4 percent. The indexes for food wholesaling and for long-distance motor carrying also decreased.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand rose 0.6 percent in December, the largest advance since moving up 0.8 percent in July. In December, the index for total services inputs to stage 4 intermediate demand increased 0.9 percent, and prices for total goods inputs climbed 0.2 percent. (See table D.) Advances in the indexes for gross rents for retail properties, machinery and equipment parts and supplies wholesaling, portfolio management, nonferrous metals, nonresidential property management fees, and gross rents for office buildings outweighed declines in prices for diesel fuel; hay, hayseeds, and oilseeds; and services related to securities brokerage and dealing (partial). The index for stage 4 intermediate demand rose 3.7 percent in 2025 after increasing 2.6 percent in 2024.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand rose 0.2 percent in December after edging up 0.1 percent in November. In December, the index for total services inputs to stage 3 intermediate demand increased 0.4 percent. In contrast, prices for total goods inputs decreased 0.1 percent. Advances in the indexes for gross rents for retail properties; raw milk; nonferrous metals; courier, messenger, and U.S. postal services; slaughter poultry; and metals, minerals, and ores wholesaling outweighed declines in prices for diesel fuel, slaughter hogs, and cable network advertising time sales. The index for stage 3 intermediate demand rose 1.9 percent in 2025 following a 1.8-percent increase in 2024.

Stage 2 intermediate demand: The index for stage 2 intermediate demand advanced 1.4 percent in December, the largest increase since moving up 1.9 percent in January. In December, prices for total goods inputs to stage 2 intermediate demand jumped 2.6 percent, and the index for total services inputs rose 0.5 percent. Advances in prices for gas fuels, nonferrous metals, deposit services (partial), guestroom rental, business loans (partial), and pipeline transportation of energy products outweighed decreases in the indexes for crude petroleum, automotive fuels and lubricants retailing, and food wholesaling. Prices for stage 2 intermediate demand increased 0.8 percent in 2025 after rising 2.2 percent in 2024.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand rose 0.5 percent in December, the fourth consecutive advance. In December, the index for total services inputs to stage 1 intermediate demand moved up 1.0 percent. Conversely, prices for total goods inputs fell 0.1 percent. Increases in the indexes for gross rents for retail properties, guestroom rental, utility natural gas, nonferrous metals, machinery and equipment parts and supplies wholesaling, and airline passenger services outweighed declines in prices for diesel fuel, services related to securities brokerage and dealing (partial), and agricultural chemicals and chemical products. The index for stage 1 intermediate demand rose 3.9 percent in 2025 following a 0.9-percent advance in 2024.

Effect of Federal Government Shutdown on PPI Data

The Federal government shutdown in October and November has significantly delayed the transmission of Producer Price Index (PPI) price-update requests. Price-update requests asking for information as of the December 9, 2025 pricing date were sent to PPI survey respondents on January 5, 2026. The response rate for December data reflected in this release is within the normal range, and no modifications to PPI methodology or procedures were necessary.

The effects of the government shutdown will continue to delay upcoming PPI data releases, with the January PPI data release rescheduled for February 27, 2026. Revised PPI release dates will be posted at www.bls.gov/bls/2025-lapse-revised-release-dates.htm as they become available.

Recalculated Relative Importance Figures and Seasonal Adjustment Factors to be Available on February 27, 2026

Relative Importance Figure Tables for December 2025: * Final demand by individual commodities * Final demand by component series * Individual commodities of intermediate demand by commodity type * Component series of intermediate demand by commodity type * Individual commodities of intermediate demand by production flow * Component series of intermediate demand by production flow * Commodities, all levels * Wherever-provided services and construction

Seasonal Factor Update: * Direct seasonal factors for PPI commodity indexes for 2026 * Recalculated seasonal factors for the last 5 years (2021-2025) for PPI commodity indexes * Recalculated seasonal factors for the last 5 years (2021-2025) for PPI FD-ID indexes

Recalculated seasonal index data for 2021-2025 for the FD-ID and commodity indexes also will be posted to the PPI database on the BLS website on February 27, 2026, at 8:30 AM eastern time.

For additional information, contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

PPI Updates Commodity Weight Allocations for the Final Demand-Intermediate Demand Aggregation Structure

Effective with the release of data for January 2026 on February 27, 2026, the Bureau of Labor Statistics (BLS) will update weight allocations used to calculate the Producer Price Index (PPI) Final Demand-Intermediate Demand (FD-ID) indexes to more accurately reflect recent sales patterns. The new allocations will be based primarily on data from the 2017 Input-Output (I-O) Accounts from the Bureau of Economic Analysis (BEA). The allocations were previously based on the 2012 I-O of Accounts data. PPI commodity index weights continue to be based on shipment values from the 2017 economic census, which were applied in January 2023. It is the proportions of these commodity index weights allocated to the various FD-ID categories, including Final demand, Intermediate demand by commodity type, and Intermediate demand by production flow, that will be updated.

This allocation update will not change the PPI commodity classification system, reference base, the FD-ID aggregation structure, or historical index data. It may, however, result in substantial shifts in the relative importance figures of certain commodity components that make up the FD- ID indexes.

Relative importance figure tables for December 2025, which detail the shift in weight allocations, as well as price movements in 2025, will be available on February 27, 2026 on the BLS website at www.bls.gov/ppi/tables/. This information also may be requested from the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.