September 10, 2026

According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) for final demand increased 0.4% in August 2026, seasonally adjusted. This follows a 0.1% increase in July and a 0.1% decline in June. On an unadjusted basis, the index for final demand rose 5.4% over the 12 months ended August.

The August increase was driven primarily by final demand goods, which advanced 1.1%, while final demand services edged up 0.1%.

Excluding foods, energy, and trade services, the PPI for final demand increased 0.3%, following a 0.4% rise in July. Over the past year, this measure advanced 4.7%.

Final demand goods

Prices for final demand goods increased 1.1% in August following two consecutive monthly declines. More than three-quarters of the increase was attributable to a 4.2% rise in energy prices. Prices for goods excluding foods and energy advanced 0.4%, while food prices increased 0.1%.

A significant contributor to the increase was a 24.1% surge in diesel fuel prices, which accounted for more than one-third of the overall rise in final demand goods. Prices also increased for gasoline, jet fuel, home heating oil, candy and nuts, and tobacco products. Offsetting these gains, prices for residential electric power declined 0.5%, while fresh sausage and aluminum mill shapes also moved lower.

Final demand services

The index for final demand services edged up 0.1%, marking its third consecutive monthly increase. The advance was led by a 2.3% increase in transportation and warehousing services. In contrast, trade services margins declined 0.2%, while prices for services excluding trade, transportation, and warehousing were unchanged.

A 2.0% increase in truck transportation of freight was a major contributor to the overall rise in services prices. Additional gains were recorded in airline passenger services, legal services, hospital inpatient care, and automobile retailing margins. Partially offsetting these increases, margins for fuels and lubricants retailing fell 11.3%, while prices for health, beauty, and optical goods retailing, machinery and equipment wholesaling, and portfolio management services also declined.

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