The US PPI data for December 2025 exceeded expectations, rising 0.5% month-on-month (previously 0.2%), and up 3% year-on-year; core PPI increased 0.7% month-on-month (previously 0%), and 3.3% year-on-year, both surpassing market expectations. Breakdown shows significant increases in service costs, with trade profit margins reaching a new high since mid-2024, primarily driven by wholesale profit margins for machinery and equipment; although overall commodity prices remained flat due to falling energy prices, core commodities (such as home appliances and construction machinery) continued to accelerate in price increases. Analysts point out that companies are passing on tariff cost pressures through supply chains, which may push up consumer inflation in the coming months. Despite the Federal Reserve pausing rate cuts in December and emphasizing economic stability, the PPI data may intensify market concerns about inflation stickiness, affecting subsequent interest rate decision paths.