The Producer Price Index (PPI) —the Bureau of Labor Statistics’ measure of price changes received by U.S. producers—provides an early look at inflation pressures that ripple through our economy long before they show up in consumer prices. On January 30, 2026, the BLS reported that the PPI for final demand rose 0.5% in December 2025 , with prices for services rising sharply and goods prices essentially unchanged. On an annual basis, producer prices climbed about 3.0% in 2025 after rising 3.5% in 2024. ( Bureau of Labor Statistics ) While these headline figures matter for macroeconomic policy and markets, the real question for small business owners—especially Black and minority entrepreneurs —is how these wholesale price dynamics intersect with their costs, pricing power, industry exposures, and geographic realities. 1. PPI: A Leading Indicator for Business Costs in Key Industries The PPI covers industry-level price changes across thousands of goods and services, letting us see which s...
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