The Producer Price Index for final demand increased 0.2 percent in November 2025, driven primarily by a 0.9 percent rise in final demand goods (especially a 10.5 percent jump in gasoline prices), while final demand services remained unchanged. Assistance from Claude AI.
Key Takeaways:
- Final demand prices increased 0.2 percent in November, with a 3.0 percent rise over the past 12 months
- Gasoline prices surged 10.5 percent, accounting for more than half of the increase in final demand goods
- Final demand services remained unchanged as declining trade service margins offset increases in other service categories
- Core inflation (excluding foods, energy, and trade services) rose 0.2 percent monthly and 3.5 percent annually
- Diesel fuel prices jumped 12.4 percent, driving most of the increase in processed goods for intermediate demand
Article Summary:
The U.S. Bureau of Labor Statistics reported that the Producer Price Index for final demand rose 0.2 percent in November 2025 on a seasonally adjusted basis, following a modest 0.1 percent increase in October and a larger 0.6 percent advance in September. Over the 12 months ending in November, the final demand index climbed 3.0 percent on an unadjusted basis.
The November increase was driven primarily by final demand goods, which advanced 0.9 percent — the largest monthly rise since February 2024. More than 80 percent of this increase stemmed from final demand energy prices, which surged 4.6 percent. Within this category, gasoline prices alone jumped 10.5 percent and accounted for more than half of the overall rise in final demand goods. Other contributors included electric power, diesel fuel, fresh fruits and melons, jet fuel, and light motor trucks. Final demand goods excluding foods and energy increased 0.2 percent, while food prices remained flat.
In contrast, final demand services showed no change in November after rising 0.3 percent in October. The index for final demand services excluding trade, transportation, and warehousing rose 0.3 percent, as did the index for final demand transportation and warehousing services. However, margins for final demand trade services fell 0.8 percent. Trade indexes measure the profit margins received by wholesalers and retailers rather than the prices of goods themselves.
Notable price increases within services included bundled wired telecommunications access services, which rose 4.6 percent, along with machinery and vehicle wholesaling, portfolio management, outpatient care, and game software publishing. Conversely, margins for health, beauty, and optical goods retailing decreased 4.3 percent, while automobile retailing, chemicals wholesaling, guestroom rental, and food and alcohol retailing also declined.
The index for final demand excluding foods, energy, and trade services — a core measure that strips out volatile components — advanced 0.2 percent in November after increasing 0.7 percent in October. For the 12 months ended in November, this core measure climbed 3.5 percent, matching the largest year-over-year increase since March and signaling persistent underlying price pressures.
Intermediate demand indexes, which track prices for goods and services used in production rather than sold to final users, showed mixed results. Processed goods for intermediate demand increased 0.6 percent, with most of the gain attributable to processed energy goods climbing 3.0 percent. Diesel fuel prices rose 12.4 percent and accounted for nearly three-fourths of the advance in processed goods. Unprocessed goods for intermediate demand rose 0.4 percent, led by a 10.8 percent increase in natural gas prices. Services for intermediate demand moved up 0.2 percent, with management consulting services jumping 4.2 percent.
The report noted that a federal government shutdown in October and November significantly delayed the transmission of price update requests to survey respondents, although response rates remained within normal ranges and no modifications to methodology were necessary. Most new model year passenger cars and light trucks were introduced into the index during October and November, with quality adjustments accounting for 4.9 percent of the average price increase for 2026 model passenger cars and 19.9 percent for light trucks.
U.S. Bureau of Labor Statistics, “Producer Price Indexes — November 2025,” U.S. Department of Labor, January 14, 2026, https://www.bls.gov/news.release/pdf/ppi.pdf
Important Quotations:
- “The Producer Price Index for final demand increased 0.2 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today.”
- “More than half of the November rise in the index for final demand goods is attributable to prices for gasoline, which moved up 10.5 percent.”
- “Over 80 percent of the November increase can be traced to prices for final demand energy, which jumped 4.6 percent.”
- “For the 12 months ended in November, prices for final demand less foods, energy, and trade services climbed 3.5 percent, the largest 12-month increase since rising 3.5 percent in March.”