Producer Price Index in the US 2025
The Producer Price Index (PPI) remains a critical economic indicator that measures the average change in selling prices received by domestic producers for their output in the United States. In 2025, the PPI continues to serve as a vital barometer for inflationary pressures at the wholesale level, providing economists, policymakers, and business leaders with essential insights into price trends across various industries and commodity groups.
Throughout 2025, the Bureau of Labor Statistics has maintained its rigorous methodology in calculating the PPI, incorporating data from thousands of establishments across diverse sectors. The index tracks price movements for goods, services, and construction, offering a comprehensive view of producer-level inflation that often precedes consumer price changes. This forward-looking characteristic makes the PPI in the US 2025 an indispensable tool for understanding economic trends and making informed financial decisions.
Key Producer Price Index Facts in the US 2025
| Fact Category | Details | Impact |
|---|---|---|
| Latest Monthly Change | 0.0% in June 2025 (unchanged) | Stable wholesale prices |
| Annual Growth Rate | 2.3% for 12 months ending June 2025 | Moderate inflation pressure |
| Final Demand Goods | +0.3% increase in June 2025 | Rising goods costs |
| Final Demand Services | -0.1% decrease in June 2025 | Declining service prices |
| Resampled Industries | 11 industries updated in June 2025 | Enhanced accuracy |
| Capital Equipment | +0.5% increase in June 2025 | Higher manufacturing costs |
| Stage 1 Intermediate Demand | +1.4% for 12 months ended March 2025 | Upstream price pressures |
| Data Release Schedule | Monthly at 8:30 AM ET | Consistent reporting |
In 2025, the U.S. Producer Price Index (PPI) reflects a relatively stable inflation environment, with wholesale prices showing 0.0% change in June 2025, signaling steady cost levels across the production sector. The annual growth rate of 2.3% for the 12 months ending June indicates moderate inflation pressure compared to past years. Notably, prices for final demand goods rose by 0.3%, while final demand services declined by 0.1%, showcasing a mixed inflation trend between the goods and service sectors. Additionally, 11 industries were resampled in June to improve index accuracy, and the capital equipment segment saw a 0.5% increase, pointing to rising manufacturing input costs.
Upstream indicators also show mounting cost pressure, with Stage 1 Intermediate Demand prices rising 1.4% year-over-year by March 2025. These figures hint at potential future inflation in consumer markets as manufacturers absorb higher costs. The stability in headline PPI combined with modest growth in key segments indicates that while inflation remains under control, certain categories—especially goods and capital inputs—are experiencing pricing increases. The PPI remains a crucial economic signal, and its monthly release at 8:30 AM ET provides timely insights into price trends affecting producers, manufacturers, and ultimately consumers.
Producer Price Index Report by Month in the US 2025
| Month | Monthly Change (%) | 12-Month Change (%) | Final Demand Goods (%) | Final Demand Services (%) |
|---|---|---|---|---|
| June 2025 | 0.0 | 2.3 | +0.3 | -0.1 |
| May 2025 | +0.1 | 2.4 | +0.1 | +0.1 |
| April 2025 | +0.2 | 2.3 | +0.3 | +0.1 |
| March 2025 | +0.1 | 2.1 | +0.2 | 0.0 |
| February 2025 | +0.3 | 2.0 | +0.4 | +0.2 |
| January 2025 | +0.2 | 1.9 | +0.3 | +0.1 |
The monthly Producer Price Index trends in the US 2025 demonstrate a pattern of gradual price increases through the first half of the year, culminating in stability during June. The unchanged PPI in June 2025 marks a significant development after five consecutive months of increases, suggesting that wholesale price pressures may be easing. This trend is particularly noteworthy given the consistent 12-month growth rates ranging from 1.9% to 2.4% throughout the year.
The monthly data reveals distinct patterns between goods and services pricing. Final demand goods have shown more volatility, with increases ranging from 0.1% to 0.4% monthly, while final demand services have remained relatively stable with smaller fluctuations. The February 2025 surge of 0.3% represents the highest monthly increase observed during this period, primarily driven by energy costs and supply chain adjustments. The stabilization in June 2025 indicates that these earlier pressures have begun to subside, creating a more favorable environment for businesses managing input costs.
US Producer Price Index Report by Year
| Year | Annual PPI Change (%) | Final Demand (%) | Economic Context | Key Drivers |
|---|---|---|---|---|
| 2025 | 2.3 (YTD June) | 2.3 | Post-pandemic normalization | Stable demand, moderate inflation |
| 2024 | 3.0 (November) | 3.0 | Economic recovery | Supply chain improvements |
| 2023 | 1.2 | 1.2 | Inflation cooling | Energy price stabilization |
| 2022 | 11.7 | 11.7 | High inflation period | Ukraine conflict, supply disruptions |
| 2021 | 9.7 | 9.7 | Pandemic recovery | Stimulus effects, reopening |
| 2020 | -0.8 | -0.8 | COVID-19 pandemic | Demand collapse, deflation |
| 2019 | 1.3 | 1.3 | Stable growth | Trade tensions |
| 2018 | 2.9 | 2.9 | Economic expansion | Strong demand |
| 2017 | 2.4 | 2.4 | Moderate growth | Commodity recovery |
| 2016 | -0.2 | -0.2 | Slow recovery | Oil price decline |
| 2015 | -1.0 | -1.0 | Commodity downturn | Strong dollar effects |
The 10-year Producer Price Index history in the US from 2015-2025 illustrates the dramatic economic cycles that have shaped wholesale pricing. The current 2.3% annual rate in 2025 represents a return to more normal inflationary conditions after the unprecedented volatility of recent years. The extreme spike to 11.7% in 2022 marked the highest PPI inflation in decades, driven by global supply chain disruptions and geopolitical tensions.
The data reveals clear economic phases: the deflationary period of 2015-2016 when commodity prices collapsed, the moderate growth years of 2017-2019 with typical inflation rates, the pandemic-induced deflation of 2020, and the dramatic recovery surge of 2021-2022. The cooling trend from 2023-2025 demonstrates successful monetary policy interventions and market adjustments. This 10-year perspective shows that the current 2.3% PPI growth in 2025 aligns with historical norms and suggests a stabilizing economic environment for producers and consumers alike.
Producer Price Index by Industry Sectors in the US 2025
| Industry Sector | June 2025 Change (%) | 12-Month Change (%) | Key Drivers | Market Impact |
|---|---|---|---|---|
| Transportation & Warehousing | -0.9 | +1.8 | Fuel cost stabilization | Lower logistics costs |
| Industrial Sand Mining | +2.1 | +8.4 | Construction demand | Higher material costs |
| Tobacco Manufacturing | +1.3 | +5.2 | Regulatory changes | Stable pricing |
| Wood Window & Door Manufacturing | -0.4 | +3.7 | Housing market slowdown | Construction impact |
| Electrical Equipment Manufacturing | +0.8 | +4.1 | Technology demand | Infrastructure costs |
| Railroad Rolling Stock | +1.5 | +6.3 | Infrastructure investment | Transportation upgrades |
| Health Insurance Carriers | +0.2 | +7.8 | Medical cost inflation | Healthcare expenses |
| Nursing Care Facilities | +0.6 | +9.1 | Labor shortages | Elder care costs |
The Producer Price Index by industry sectors in the US 2025 reveals significant variations across different economic segments, reflecting the diverse pressures affecting various industries. Transportation and warehousing services experienced a notable decline of 0.9 percent in June, primarily due to stabilizing fuel costs and improved supply chain efficiency. This decline represents a positive development for businesses relying on logistics services, potentially translating to lower shipping costs throughout the economy.
The data shows particularly strong price increases in essential service sectors, with nursing care facilities leading at 9.1% annual growth and health insurance carriers at 7.8%. These increases reflect ongoing challenges in healthcare delivery, including persistent labor shortages and rising medical costs. The Bureau of Labor Statistics resampled 11 industries in June 2025, including critical sectors like industrial sand mining and railroad rolling stock manufacturing, ensuring more accurate representation of current market conditions and technological changes affecting these industries.
Producer Price Index Core vs Headline in the US 2025
| Index Type | June 2025 Monthly (%) | Annual Rate (%) | Key Components | Economic Significance |
|---|---|---|---|---|
| Headline PPI | 0.0 | 2.3 | All goods and services | Overall inflation measure |
| Core PPI (Ex Food & Energy) | +0.1 | 2.8 | Excluding volatile items | Underlying price trends |
| Final Demand Goods | +0.3 | 2.1 | Physical products | Manufacturing costs |
| Final Demand Services | -0.1 | 2.4 | Service sector | Service economy health |
| Intermediate Demand | +0.2 | 3.2 | Production inputs | Upstream pressures |
| Commodity Groups | +0.1 | 2.5 | Raw materials | Resource costs |
The core versus headline Producer Price Index comparison in the US 2025 provides crucial insights into underlying inflation trends. The core PPI, which excludes volatile food and energy prices, showed a 2.8% annual increase, slightly higher than the headline rate of 2.3%. This divergence indicates that while energy costs have moderated, other sectors continue to experience steady price pressures.
The core PPI’s 0.1% monthly increase in June 2025 demonstrates persistent but manageable inflationary pressures in the broader economy. The higher core rate suggests that businesses are facing ongoing cost increases in areas like labor, materials, and services that aren’t captured in the more volatile food and energy categories. This 2.8% core inflation rate remains within the Federal Reserve’s comfort zone while indicating that producers continue to manage elevated but stable input costs across diverse sectors of the economy.
Producer Price Index Commodity Groups in the US 2025
| Commodity Group | June 2025 Change (%) | 12-Month Change (%) | Key Products | Market Drivers |
|---|---|---|---|---|
| Final Demand Foods | -0.2 | +1.8 | Processed foods, beverages | Agricultural stability |
| Final Demand Energy | +1.1 | -2.3 | Gasoline, heating oil | Seasonal adjustments |
| Final Demand Construction | +0.4 | +3.9 | Building materials | Housing demand |
| Capital Equipment | +0.5 | +2.7 | Machinery, technology | Business investment |
| Consumer Goods | +0.2 | +2.1 | Retail products | Consumer demand |
| Materials & Components | +0.3 | +4.2 | Industrial inputs | Manufacturing needs |
| Processed Goods | 0.0 | +2.9 | Intermediate products | Supply chain stability |
| Unprocessed Goods | +0.6 | +1.4 | Raw materials | Commodity markets |
The Producer Price Index commodity groups analysis for the US 2025 reveals distinct patterns across different product categories. Final demand energy showed a 1.1% increase in June despite a 2.3% annual decline, reflecting seasonal adjustments and temporary supply factors. Meanwhile, final demand foods decreased 0.2% monthly while maintaining a moderate 1.8% annual increase, indicating agricultural price stability after previous volatility.
Construction materials continue showing strength with a 3.9% annual increase, driven by ongoing infrastructure projects and housing market activity. The materials and components category leads with 4.2% annual growth, reflecting persistent upstream cost pressures affecting manufacturing sectors. The commodity classification organizes goods, services, and construction by similarity of product or end use, providing a comprehensive view of how different economic sectors are experiencing price changes and helping businesses understand cost pressures across their supply chains.
Producer Price Index Economic Impact Analysis in the US 2025
| Economic Factor | Current Status | PPI Influence | Future Outlook | Policy Implications |
|---|---|---|---|---|
| Consumer Price Index | Moderate increase | Strong correlation | Gradual transmission | Monetary policy stability |
| Federal Reserve Policy | Neutral stance | Key inflation indicator | Data-dependent decisions | Interest rate considerations |
| Business Investment | Steady growth | Input cost awareness | Capacity expansion | Capital allocation |
| Manufacturing Output | Stable production | Cost management focus | Supply chain optimization | Industrial policy |
| International Trade | Competitive position | Export price competitiveness | Global market share | Trade policy |
| Employment Levels | Low unemployment | Wage-price dynamics | Labor market stability | Employment policy |
The Producer Price Index economic impact analysis for the US 2025 demonstrates the far-reaching implications of wholesale price trends on broader economic conditions. The unchanged PPI in June 2025 provides the Federal Reserve with valuable data supporting current monetary policy approaches, as producer prices often lead consumer price movements by several months. This stability suggests that inflationary pressures at the wholesale level are moderating, potentially supporting continued economic expansion without excessive price pressures.
The 2.3% annual PPI growth rate aligns with Federal Reserve targets and economic forecasts, indicating a healthy balance between growth and price stability. Businesses benefit from this predictable inflation environment, enabling better long-term planning and investment decisions. The moderate pace of producer price increases supports continued employment growth while maintaining competitive positioning in international markets. The PPI measures price change from the seller’s perspective, contrasting with consumer-focused measures, providing policymakers with essential early indicators of inflation trends that inform monetary policy decisions and economic planning initiatives.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
