US Producer Prices Rebound Mildly: PPI Jumps 0.3% MoM as Inflation Refuses to Die Quietly

The Producer Price Index came out for November 25, 2025, and it was a bit of a surprise. The main PPI went up 0.3% from last month, which is different from the 0.1% drop before. People thought it would be lower. Compared to last year, producer inflation is up to 2.7% from 2.6%. This means prices for businesses are going up again after cooling down for a while. Energy costs are a little higher, which cancels out some price drops in other areas. It reminds everyone that getting inflation down completely might be tricky.

If you take out food and energy, the PPI is about the same as before, around 2.7–2.8% compared to last year. This is what people expected, so it might make the Federal Reserve feel a little better, since it means things aren't getting too crazy. The production and shipping areas are pretty steady. Some things cost a little less, which makes it seem like we might avoid a big economic problem. Still, that jump in the main PPI from last month could worry people who want interest rates to go down, because they're hoping for more proof that prices are dropping.

This PPI report is the first look at wholesale inflation in a few weeks, and it comes before the next CPI report and the Fed's meeting. It's not a disaster, but it does suggest that things will stay higher for longer, and it makes it less likely that interest rates will be cut a lot early next year. The main point is that inflation isn't going crazy, but it's also not dropping as fast as some people would like.