US December 2025 PPI data exceeded expectations, with month-on-month increase of 0.5% (previous 0.2%) and year-on-year increase of 3%; core PPI rose 0.7% month-on-month (previous 0%), reaching 3.3% year-on-year, both above market expectations. Breakdown shows service costs rising significantly, with trade profit margins reaching new highs since mid-2024, with machinery and equipment wholesale profit margins as the main driver; commodity prices remained flat overall due to energy declines, but core commodities (such as home appliances and construction machinery) continued accelerating upward. Analysis indicates enterprises are transmitting tariff cost pressures through supply chains, potentially fueling consumer-end inflation in coming months. Despite the Fed pausing rate cuts in December and emphasizing economic resilience, PPI data may exacerbate market concerns about inflation stickiness, affecting subsequent interest rate decision paths.