US final demand PPI increased +0.5% MoM (vs +0.2% MoM expected) in December 2025 and rose +3.0% YoY (unchanged from November), reflecting stronger service-sector price pressures while goods prices were flat.

• Final demand services prices climbed +0.7% MoM, the largest increase since July, with a +1.7% MoM jump in trade margins accounting for roughly two-thirds of the monthly rise.

• Final demand goods prices were unchanged MoM, as a +0.4% MoM increase in core goods was offset by -1.4% MoM energy and -0.3% MoM food price declines.

• Core final demand PPI excluding food, energy, and trade rose +0.4% MoM, marking the eighth consecutive monthly increase and pointing to persistent underlying price gains.

• Within services, margins for machinery and equipment wholesaling surged +4.5% MoM, contributing over 40% of the monthly services increase, while transportation and warehousing rose +0.5% MoM.

• Processed goods for intermediate demand slipped -0.1% MoM, driven by a -2.4% MoM drop in processed energy goods and -1.3% MoM in processed foods, partially offset by gains in core materials.

• Unprocessed goods for intermediate demand jumped +2.3% MoM, the largest increase since January, led by +5.5% MoM in unprocessed energy materials, including a +34.8% surge in natural gas prices.

• Services for intermediate demand rose +0.7% MoM, with most of the increase coming from services excluding trade, transportation, and warehousing, alongside gains in trade and logistics services.