U.S. Wholesale Prices Rose 0.5% in December

Inflation concerns as Producer Price Index increases, but Consumer Price Index decreases

Jan. 30, 2026 at 3:07pm

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The Bureau of Labor Statistics reported that the Producer Price Index, which measures the cost businesses pay for wholesale goods, rose by 0.5% in December. This increase raises concerns about potential inflation, even as the Consumer Price Index decreased in the same month.

Why it matters

The Producer Price Index is a key indicator of inflationary pressures in the economy. A rise in wholesale prices can lead to higher consumer prices down the line, potentially impacting household budgets and the overall cost of living.

The details

The 0.5% increase in the Producer Price Index in December was more than double the 0.2% rise in November and 0.1% increase in October. For the year, wholesale prices, not including foods, energy and trade services, rose by 3.5%, slightly less than the 3.6% increase in 2024. The rise was driven by higher costs for machinery and equipment wholesaling, nonferrous metals, and other sectors, while some costs like bundled wired telecommunications access services declined.

  • The Producer Price Index rose by 0.5% in December 2025.
  • The Consumer Price Index decreased in December 2025.

The players

Bureau of Labor Statistics

The U.S. government agency that produces economic data, including the Producer Price Index and Consumer Price Index.

Kevin Hassett

Director of the National Economic Council, who commented on the data and noted that the Consumer Price Index has been lower than the Producer Price Index over the past three months.

JPMorgan

An investment bank whose analysts said the rise in the Producer Price Index points to ongoing pipeline pressures for consumer inflation, potentially bolstered by tariffs.

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What they’re saying

“On an over-year-ago basis, core final demand PPI goods rose 3.7%, which points to ongoing pipeline pressures for consumer inflation that appears to be bolstered in part by tariffs.”

— JPMorgan analysts

“The CPI over the last three months, the annual rate, was lower than 2.”

— Kevin Hassett, Director, National Economic Council (CNBC)

The takeaway

The rise in the Producer Price Index, coupled with the decline in the Consumer Price Index, suggests a complex economic picture with potential inflationary pressures in the pipeline but not yet fully reflected in consumer prices. Policymakers and businesses will be closely watching these indicators to assess the broader trends in the economy.