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The increase in producer costs jumped 0.5% in December

By Mark Huffman of ConsumerAffairs

• Producer prices rose faster at years end: The Producer Price Index (PPI) for final demand increased 0.5% in December, following gains of 0.2% in November and 0.1% in October. On an annual basis, producer prices were up 3.0% in 2025, after rising 3.5% in 2024.

• Service-sector costs drove the increase: Decembers advance was fueled by a 0.7% jump in prices for final demand services, while prices for final demand goods were flat.

• Underlying inflation pressures persisted: Prices excluding food, energy, and trade services climbed 0.4% for the eighth straight month, signaling continued momentum in core producer inflation.

Inflation-weary consumers might not find immediate relief. The December Producer Price Index a measure of costs at the wholesale level suggests that inflation pressures remain embedded in the U.S. economy, particularly within the service sector, even as some relief continues to come from energy and food prices.

The Bureau of Labor Statistics reports producer prices for final demand climbed 0.5% in December, marking the fastest monthly increase since midyear and capping a steady acceleration over the final quarter. While the annual increase in 2025 slowed to 3.0% from 3.5% in 2024, the month-to-month data point to renewed momentum that could complicate the inflation outlook as 2026 begins.

Higher services costs

A key takeaway from the report is where the price pressures are coming from. Services accounted for virtually all of Decembers increase, with prices rising 0.7%, the largest monthly gain since July.

About two-thirds of that increase was driven by higher trade service margins, which reflect the markups wholesalers and retailers receive. In particular, machinery and equipment wholesaling margins surged 4.5%, making it one of the single biggest contributors to the overall rise.

Outside of trade services, prices for transportation and warehousing services increased 0.5%, while other services excluding trade, transportation, and warehousing rose 0.3%. Increases were also recorded for guestroom rentals, airline passenger services, portfolio management, and several retail categories tied to food, alcohol, and health-related goods. These broad-based gains suggest businesses continue to pass higher costs through the supply chain.

Product prices remained flat

By contrast, prices for final demand goods were unchanged in December, masking sharp divergences beneath the surface. Core goods prices excluding food and energy rose 0.4%, but that increase was offset by falling food and energy prices. Energy prices dropped 1.4%, led by a steep 14.6% decline in diesel fuel, while food prices slipped 0.3%. Gasoline, jet fuel, beef, and steel scrap also became cheaper, offering some counterweight to service-driven inflation.

Perhaps most telling for the inflation outlook is the continued rise in prices excluding food, energy, and trade services. This closely watched core measure increased 0.4% in December and rose 3.5% over the year, nearly matching 2024s pace.

Eight consecutive monthly increases suggest that underlying inflation pressures have yet to meaningfully cool at the producer level.

For consumers, persistent increases in service-sector and core producer prices raise the risk that inflation remains sticky in the months ahead. While falling energy costs may continue to provide short-term relief, the December PPI report indicates that many businesses are still facingand passing alonghigher costs, a dynamic that could keep overall inflation elevated as the new year unfolds.

The popular product is advertised as all natural

By Mark Huffman of ConsumerAffairs

• A proposed class action lawsuit claims Costcos rotisserie chicken contains undisclosed or misleadingly labeled preservatives.

• Plaintiffs allege shoppers believed the popular chicken was more natural than it actually is.

• Costco says its labeling complies with food safety and disclosure laws.

A new class action lawsuit is challenging the ingredients in one of Costcos most popular food items, alleging that the retailer misled shoppers about preservatives used in its iconic $4.99 rotisserie chicken.

Filed in federal court, the lawsuit claims Costco markets its rotisserie chicken in a way that leads consumers to believe the product is free from artificial preservatives, when in fact it allegedly contains chemical additives used to enhance shelf life and appearance. The plaintiffs argue that ingredient disclosures and in-store marketing do not clearly communicate the presence or purpose of those substances.

What the suit claims

At the center of the case are preservatives such as sodium phosphate and other processing aids, which the lawsuit says many consumers actively try to avoid. The complaint maintains that reasonable shoppers associate Costcos rotisserie chicken with freshness and minimal processing, and would not have purchased it or would have paid less had they known preservatives were involved.

Costcos rotisserie chicken has achieved near-legendary status as a loss leader, drawing millions of customers into its warehouses each week. The company has previously highlighted its control over the supply chain, including operating its own poultry facilities, to ensure consistency and affordability.

Because sodium phosphate and carrageenan perform preservative functions in the Rotisserie Chicken, the Rotisserie Chicken in fact contains added preservatives, the lawsuit claims. This inconsistency is not apparent to consumers at the time of purchase because, compared to the No Preservatives Representations, the back of the label ingredient list is less prominent, appearing in smaller print on the Rotisserie Chickens packaging.

The companys response

In response to the lawsuit, Costco has denied any wrongdoing, stating that all ingredients are properly disclosed and approved by regulators. The company says its labeling meets federal food safety standards and that preservatives used in the chicken are common in the industry and serve legitimate food safety and quality purposes.

Consumer advocates say lawsuits like this reflect growing demand for transparency in food labeling, as shoppers increasingly seek out products they perceive as natural or minimally processed. Courts, however, often weigh those expectations against whether companies technically comply with labeling regulations.

The lawsuit seeks class-action status, damages for affected consumers, and changes to Costcos labeling and marketing practices. If the case proceeds, it could have implications for how prepared foods are described across grocery stores nationwide.

Buyers are balking at unaffordable prices

By Mark Huffman of ConsumerAffairs

• Roughly 40,000 U.S. home-purchase agreements were canceled in December, representing 16.3% of homes that went under contract, according to a new Redfin report.

• The cancellation rate rose from 14.9% a year earlier, marking the highest December level since Redfin began tracking the data in 2017.

• Analysts say high housing costs and growing inventory are giving buyers more leverageand more willingness to walk away from deals.

Homebuyers backed out of a record share of purchase agreements in December as affordability pressures and rising inventory reshaped the housing market, according to a new analysis from real estate broker Redfin.

Redfin estimates that about 40,000 pending home sales fell through nationwide in December, equal to 16.3% of homes that went under contract that month. While the data is seasonal, the year-over-year increase signals a market where buyers are growing increasingly cautious and selective.

High housing costs and rising inventory have made homebuyers more selective, said Chen Zhao, head of economics research at Redfin. Home sellers outnumber buyers by a record margin, meaning the buyers who are in the market have options and may walk away if they believe they can find a better or more affordable home.

The role of inspections

One common reason deals collapse is the inspection contingency. Buyers often cancel contracts after inspections uncover issues such as structural problems or deferred maintenance. In many cases, however, inspections may serve as the formal trigger for a decision that is really driven by sticker shock, as buyers come to terms with high monthly mortgage payments.

Atlanta emerged as the metro area with the highest share of canceled deals. More than one in five pending home sales there22.5%fell through in December, up from 19.6% in November. Jacksonville, Florida, and San Antonio tied for second at 20.6%, followed by Cleveland at 20.2% and Tampa at 19.4%.

Atlanta has quickly shifted into a strong buyers market. Redfin noted that sellers in the metro now outnumber buyers by more than 80%, a dynamic that has emboldened buyers to walk away when terms arent favorable. Atlanta first topped the nation for cancellations in November and has continued that trend.

Fewer cancellations in the Northeast

At the other end of the spectrum, cancellations were rare in parts of the Northeast and California. Nassau County, New York, posted the lowest rate at just 3.8%, followed by San Francisco at 4.2%, San Jose, California, at 8.9%, and New York City at 10.5%.

Although cancellation rates remain relatively low in the Bay Area, they rose sharply there compared with last year. San Jose saw the largest annual increase among the metros analyzed, with cancellations jumping 6.8 percentage points. Oakland and Sacramento also recorded notable increases, reflecting a market that has cooled from its post-pandemic frenzy and moved into more balanced territory.

Buyers have options and arent shy about negotiating to find the right home, said Alison Williams, a Redfin Premier agent in Sacramento. Cost is a major barrier right now, so if the seller hasn't fixed maintenance issues or the home is priced too high, the buyer may back out.

Not all markets saw rising cancellations. Detroit experienced the largest decline, followed by Warren, Michigan, Pittsburgh, Los Angeles and Nassau County, New Yorksuggesting that local conditions still matter greatly in determining buyer behavior.

Redfin sees some relief on the horizon for would-be buyers. Mortgage payments have eased in recent months as interest rates declined, and home price growth has slowed. Redfin economists expect affordability to gradually improve in 2026, with wages rising faster than housing costspotentially stabilizing the market and reducing the incentive for buyers to abandon deals at the last minute.

Indianapolis leads the pack

By Mark Huffman of ConsumerAffairs

• Home buyers are likely to face less competition and lower stress in Indianapolis, Atlanta, and Charlotte this year, according to new housing market research.

• Zillow has named those three metros the most buyer-friendly large housing markets of 2026, leading a list of 10 U.S. cities where conditions favor shoppers.

• The top markets combine affordability, easing price growth, and lighter competition, giving buyers more leverage than in hotter markets such as Hartford.

Home shoppers tired of bidding wars may finally find some breathing room in 2026 especially in parts of the Midwest and the South.

Zillow has released its annual ranking of the most buyer-friendly housing markets among the nations 50 largest metros, with Indianapolis, Atlanta, and Charlotte taking the top three spots.

The markets were singled out for offering a rare mix of relative affordability, cooling home price growth in the near term, and the potential for appreciation down the road.

These conditions, Zillow said, create a more favorable entry point for buyers who have been sidelined by high prices and intense competition in recent years.

Lower competition gives buyers more time to decide and more room to negotiate, said Orphe Divounguy, senior economist at Zillow. Cooling prices today, paired with expected growth ahead, make for a good entry point for those who have been waiting for the right moment.

Rounding out Zillows top 10 buyer-friendly markets of 2026 are Jacksonville, Oklahoma City, Memphis, Detroit, Miami, Tampa, and Pittsburgh.

What makes these cities more affordable?

Zillows analysis focused on three major factors: current home value trends and expected appreciation, how much of a typical households income goes toward a mortgage payment, and the level of competition measured by the companys Market Heat Index. Together, those metrics highlight markets where buyers are more likely to find homes within budget and negotiate favorable terms.

Many of the strongest buyer markets are clustered in the Midwest and the Sun Belt. Midwest cities largely avoided the sharpest price spikes during the pandemic housing boom, helping preserve affordability. In the Sun Belt, a surge in new construction has boosted inventory and reduced pressure on buyers.

In half of the top 10 markets, Zillow found that a median household can afford a typical home while keeping mortgage costs under 30% of income, assuming a 20% down payment a benchmark often used to gauge housing affordability.

The buyer-friendly outlook stands in contrast to Zillows recent designation of Hartford, Connecticut, as the hottest housing market of 2026, where competition remains fierce.

The national outlook

Nationwide, Zillow expects modest home value growth this year following a mostly flat 2025. Mortgage rates are forecast to gradually decline toward 6% or potentially lower, a shift that could help revive home sales activity.

For buyers, Zillow recommends leaning on local real estate expertise and being willing to negotiate, as sellers in softer markets may be more open to covering closing costs or offering other concessions. Sellers, meanwhile, are encouraged to price homes realistically and focus on presentation to stand out in markets where buyers have more choices.

After years of frenzied competition, Zillows latest outlook suggests that 2026 may finally offer a calmer, more balanced landscape at least for buyers in the right cities.

Insider tips to cut your bill without giving up the fun of browsing

• Wait for deeper markdowns. Clearance follows a cycle (15% 30% 50% 70% 90%). If theres lots of inventory at 15% or 30%, come back in a week or two.

• Stack every app discount. Combine Circle offers, activated manufacturer coupons, gift card promos, and your 5% Circle Card savings in one trip.

• Buy dcor and seasonal items off-season. Trendy home goods and holiday stuff oftenends up 5090% off, and not just in the main clearance aisle, but scattered on random endcaps.

Target is a carefully designed environment set-up for you to overspend. How many times have you walked in for just a couple things and walked out with a $78 receipt?

The lighting feels nicer than Walmarts, the aisles are roomy, the displays look more like Pinterest boards, and the prices feel cheap enough.

Once you understand how the system at Target works, you can flip the script and start walking out with actual deals instead of credit card regret.

Heres how to really save money at Target.

Learn the Target clearance markdown rhythm

Target doesnt randomly mark clearance items down. A pattern definitely exists.Employees know it, but most regular Target shoppers dont.

When you see a clearance price tag, know that it gets marked down in stages.

Specifically, clearance starts at 15% off, then goes to 30%, then 50%, then 70%, and then the holy grail of 90% off (if inventory lingers).

Look at the little number in the upper-right corner of the clearance price sticker, it will read 15, 30, 50, 70 or 90. Thats the percent off the original price. That tells you where the item is in the markdown process.

I was told by more than one Target employee that they do their clearance markdowns every 10-14 days.

So, when you see something on clearance and its only marked down by 15% or 30%, know that it will get marked down further if it doesnt sell out.

The takeaway: If you see something you like on clearance and its only 15% off, walk away, especially if theres a lot of inventory. Theres a great chance you can come back in a week or two and get it for 50% or even 70% off.

Learn to use the Target app to stack discounts

Most people use the Target app to see if something is in stock. Thats fine, but the real power with their app is in learning to stack discounts for some serious savings.

Inside the app youve got the following:

• Target Circle offers (store coupons)
• Manufacturer coupons (yes, digital ones still exist)
• Gift card promos (Spend $50, get a $15 gift card)
• Your 5% Circle Card discount (if you have the card)

When you learn to stackthese discounts together, the savings canadd up quickly.

For example, lets say youre buying $50 of household stuff like paper towels, dish soap, detergent, and trash bags.

You can often stack the following discounts via their app:

• Clip a Target Circle offerand save aflat dollar amount -OR-up to 20%.
• Add a dollar-offmanufacturer coupon.
• Activate a Spend $50, get a $15 gift card promo.
• Pay with a Target Circle Card and save another 5%.

In my example above, you could end up only paying around $41 out of pocket, and also walk away with a $15 gift card.

Your net cost for $50 worth of essentials just dropped into the mid-$20s.

Other tips worth knowing when stacking Target offers:

• Circle offers will apply automatically to your purchase; you just need the cashier to scan your barcode within the app.
• For manufacturer coupons, you actually have to activate them. Just tap the small green box next to the deal to add it.
• Manufacturer coupons refresh often in the Target app, so its smart to scroll through them before you shop and hit apply on anything you might use. That way theyll stay saved to your account, which means fewer missed savings at checkout.

If its decorative, assume its headed to clearance

Targets home dcor is a trap. A stylish, well-lit, smells-like-vanilla trap.

Brands like Hearth & Hand, Studio McGee, and Threshold rotate constantly. New looks come in, old ones quietly slide to the back and then to clearance.

Throw pillows. Table runners. Fake plants. Picture frames. Random ceramic objects that serve no purpose but feel important in the moment.

If its not essential and its tied to a look or season, theres a very good chance itll be 30% to 70% off within a few months.

This is especially true right after:

• Back-to-school resets
• Fall dcor transitions
• Holiday flips (Christmas to winter, winter to spring)

If you love it but dont need it now, wait. Your future self might buy it for half price.

The clearance sections are not always where you think

Most people check one sad little endcap and assume thats the clearance. Thats not how it works at Target.

Instead, Target hides clearance stuff in multiple spots in the store:

• A dedicated clearance endcap in each department.
• Random endcaps scattered throughout aisles.
• The back wall of clothing departments.
• Sometimes mixed right into the regular racks and shelves.

The back wall in womens, mens, and kids clothing is especially good. Thats where 50% and 70% off racks often live.

And heres the kicker: shelf tags are frequently wrong or outdated.

Always scan items in the app. Youll sometimes find a price thats way lower than the sticker. Ive seen $19.99 items ring up for $5.98 because they were on a later markdown stage the tag didnt show yet.

Scanning feels annoying until you realize its basically a price-check lottery you win more often than youd think.

Shop one season ahead, not in the moment

Target is legendary for post-holiday clearance sales where you can save quite a bit of money.

By being a patient shopper, and waiting for these sales, you can often save 50%, then 70%, then sometimes 90% as Target basically starts to give stuff away.

Right after major holidays is the perfect time to buy the following:

• Gift wrap and bags
• Party supplies
• Classroom treats and dcor
• Storage bins and baskets
• Outdoor string lights after summer

Also, consider buying Valentines stuff for next year on February 15th of this year.

Grab Easter basket fillers right after Easter. Stock-up on patio accessories in late summer, when the store is pushing back-to-school gear.

Pro tip: Dont just check the seasonal aisle. Instead, walk the endcaps and random clearance shelves around the store. When Target goes into deep clearance mode (7090%), employees start consolidating leftover holiday items and scatterthem throughout the store to clear space fast.