Producer Prices Cool Further: November 2025 PPI Rises Just 0.2%, Easing Inflation Fears

The Producer Price Index for final demand went up by a small amount, 0.2%, from October to November 2025. This was exactly what economists predicted, based on a report from the Bureau of Labor Statistics on January 14, 2026. This small rise shows that wholesale inflation is still going down, mostly because energy costs aren't rising as fast and prices aren't increasing across the board. This is despite strong retail sales related to the holidays, as shown in the retail sales data released the same day.

The core PPI, which doesn't include food and energy prices that change a lot, also went up by 0.2% from the previous month. This was less than what forecasters were expecting. It's also slower than the 0.1% increase in October, which confirms that inflation is still decreasing for producers. The low core reading suggests that basic price increases for goods and services are easing, which is good for the Federal Reserve's cautious approach to interest rates.

Compared to November 2024, the headline PPI rose to 3.0% in November, a bit up from October's 2.8%, while the core PPI stayed the same. This data supports the Fed's idea that inflation is slowly going back to normal levels, even though strong consumer spending is pushing prices up a bit. Together with the strong retail sales numbers, the PPI report suggests that the economy is strong and prices are cooling down, rather than inflation spiraling out of control.