economy

January 30, 2026

Producer prices rose 3% in 2025 as inflation lingered

Inflation, as measured by the producer price index, rose 3% the year ending in December, the Bureau of Labor Statistics reported Friday, more than many economists had expected.

Producer prices rose 3% in 2025 as inflation lingered

TL;DR

  • Producer price index (PPI) inflation rose 3% for the year ending in December, higher than anticipated.
  • PPI inflation is a full percentage point above the Federal Reserve's 2% target.
  • Month-to-month PPI increased by 0.5%, also exceeding expectations.
  • Core PPI inflation rose to 3.3% annually and 0.7% monthly.
  • Consumer Price Index (CPI) inflation trended down in 2025, reaching 2.7% annually.
  • Consumer sentiment and economic confidence remain historically low despite falling CPI.
  • The Federal Reserve held interest rates steady, citing concerns about high inflation and a stable labor market.
  • The economy added 50,000 jobs in December 2025, with the unemployment rate falling to 4.4%.
  • Revisions show a three-month moving average of job gains was negative 22,000 in December.
  • Private-sector job growth averaged nearly 30,000 over the past three months.
  • Public discontent with prices and affordability issues are impacting President Trump's approval ratings and making the economy a key issue for upcoming elections.

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