November 25, 2025

According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) for final demand in the U.S. increased 0.3 percent in September on a seasonally adjusted basis. This follows a 0.1 percent decline in August and a 0.8 percent rise in July. On an unadjusted basis, the index for final demand advanced 2.7 percent over the 12 months ended September 2025.

In September, a 0.9 percent increase in prices for final demand goods accounted for the overall rise, while prices for final demand services were unchanged.

Excluding foods, energy, and trade services, the index for final demand edged up 0.1 percent in September after a 0.3 percent increase in August. Over the past 12 months, this index has advanced 2.9 percent.

Final demand goods

The index for final demand goods rose 0.9 percent in September, the largest increase since February 2024. Two-thirds of this gain was driven by a 3.5 percent rise in energy prices. Food prices advanced 1.1 percent, while goods excluding foods and energy increased 0.2 percent.

Notable contributors included an 11.8 percent surge in gasoline prices, along with increases in meats, residential electric power, natural gas liquids, motor vehicles and equipment, and ethanol. Offsetting these gains were declines in prices for fresh and dry vegetables (down 1.8 percent), nonferrous metal ores, and residual fuels.

Final demand services

The index for final demand services was unchanged in September after falling 0.3 percent in August. A 0.8 percent rise in transportation and warehousing services and a 0.1 percent increase in services excluding trade, transportation, and warehousing offset a 0.2 percent decline in margins for trade services.

Key contributors included a 4.0 percent increase in airline passenger services, along with gains in food wholesaling, chemicals and allied products wholesaling, deposit services (partial), and furniture retailing. Declines were noted in margins for machinery and equipment wholesaling (down 3.5 percent), as well as in automobile retailing (partial), apparel and accessories retailing, portfolio management, and long-distance motor carrying.

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