Economic Data and Growth

The Producer Price Index for final demand (also known as wholesale prices) rose 0.5% over the month in December, after prices ticked up 0.2% in November. Over the year, producer prices moved up 3.0% in December, unchanged from November. Meanwhile, prices for final demand excluding foods, energy and trade services increased 0.4% over the month in December after rising 0.2% in November. Prices for these goods advanced 3.5% from December 2024.

Within final demand, prices for services jumped 0.7% in December after staying the same in November. Meanwhile, prices for goods stayed the same in December, after rising 0.8% in November. Within the final demand services index, margins for machinery and vehicle wholesaling moved up 4.5%, accounting for more than 40% of the December increase. Within the final demand goods index, prices for nonferrous metals climbed 4.5%, while prices for diesel fuel fell 14.6%.

Processed goods for intermediate demand inched down 0.1% in December, following a 0.5% increase in November. The decrease was driven by a 2.4% decline in the index for processed energy goods, in particular the drop in prices for diesel fuel. On the other hand, the index for processed materials less foods and energy advanced 0.7%. Over the year, the index rose 3.4% after a 0.1% increase in December 2024.

Meanwhile, prices for unprocessed goods for intermediate demand grew 2.3% in December, the largest increase since January 2025, after moving up 0.5% in November. The gain was led by a 34.8% jump in the index for natural gas. At the same time, prices for slaughter hogs declined 10.1%. Over the year, prices for unprocessed goods for intermediate demand decreased 0.3% after moving up the same amount in November.