US PPI Inflation Report Shows 3% Rise in Dec. 2025

US PPI inflation increased to 3% in December, exceeding the 2.7% forecast. The price of Bitcoin is selling below $83,000 following the release of this inflation data.

The December Producer Price Index (PPI) inflation figures in the United States exceeded expectations, indicating that inflation remains high. Bitcoin plummeted in response to the PPI inflation data from the United States, which is adverse because it could delay rate cuts even further.

US PPI Inflation Rose to 3% in December 2025

According to the Bureau of Labour Statistics data, producer prices increased by 3% year on year (YoY) in December, exceeding the expected 2.7% increase. Furthermore, the PPI increased by 0.5% month over month (MoM), exceeding predictions of 0.2%.

Meanwhile, core PPI inflation increased to 3.3% year on year, exceeding predictions of 2.9%, but this is lower than the 3.5% reported in November. Meanwhile, the core PPI increased by 0.7% MoM in December, far exceeding predictions of 0.2%.

Bitcoin Price Trades at 83k

The Bitcoin price plummeted following the announcement of the inflation figures, trading at roughly $82,000 at press time. The biggest cryptocurrency had briefly risen to $83,000 earlier in the day following Trump's choice of Kevin Warsh as the next Federal Reserve chairman. BTC is down more than 2% and has lately fallen as low as $81,000, setting a new yearly low for the cryptocurrency commodity.

The strong US PPI inflation reading comes only days after the Fed kept interest rates unchanged due to concerns that inflation remains elevated and heading above its 2% target. Fed Chair Jerome Powell had spoken about the importance of monitoring inflation levels.

He said that he anticipates Trump-tariff-induced inflation to peak in mid-2026. Following three consecutive rate cuts last year, the FOMC has already signalled that it is not in a hurry to drop rates further. The committee highlighted that the labour market is stabilising, which puts them in a favourable position to take a wait-and-see attitude.

PPI inflation would reinforce the case for the Fed to keep interest rates constant while it monitors inflation trends. It is worth noting that the November PCE inflation figure, reported last week, was 2.8%, significantly above the Fed's 2% target.