August 2026 PPI Rises 0.4% as Diesel Prices Jump 24.1%
U.S. producer prices rose 0.4% in August 2026 and 5.4% year over year, led by a 24.1% diesel surge, as core final demand advanced 0.3%, the BLS reported.
Summary
The Bureau of Labor Statistics said final demand producer prices rose a seasonally adjusted 0.4% in August 2026, following a 0.1% July gain and 0.1% June decline. The index increased 5.4% over 12 months. Final demand excluding foods, energy and trade services rose 0.3%, down from 0.4% in July, and advanced 4.7% annually. April through July figures were revised for late reports and respondent corrections.
Goods prices climbed 1.1% after two declines, with energy up 4.2% and accounting for more than three quarters of the increase. Diesel jumped 24.1% and generated more than one third of the goods rise, while goods excluding food and energy gained 0.4% and food rose 0.1%. Services edged up 0.1% for a third consecutive increase as transportation and warehousing advanced 2.3%, including a 2.0% freight trucking increase. Trade services fell 0.2%, other services were unchanged, and fuel retailing margins dropped 11.3%.
Intermediate processed goods rose 1.8%, unprocessed goods 1.1% and services 0.3%, with respective annual increases of 11.5%, 12.8% and 5.1%. Production flow prices increased 0.4% at stage 4, 0.8% at stages 3 and 2, and 1.4% at stage 1, leaving annual gains of 6.7%, 6.5%, 9.7% and 11.3%. The September PPI release is scheduled for October 15, 2026.
Positives
- Core final demand growth eased to 0.3% in August from 0.4% in July.
- Final demand services rose only 0.1%, while services excluding trade, transportation and warehousing were unchanged.
- Final demand trade services declined 0.2%, and fuel and lubricant retailing margins fell 11.3%.
- Residential electric power prices decreased 0.5%, offsetting part of the energy driven goods increase.
Risks & concerns
- Final demand prices rose 0.4% in August and 5.4% over 12 months, accelerating from July's 0.1% monthly gain.
- Diesel prices surged 24.1%, contributing more than one third of the 1.1% increase in final demand goods.
- Processed energy goods climbed 7.3%, helping lift processed intermediate goods 11.5% over 12 months.
- Unprocessed intermediate goods rose 12.8% annually, while stage 1 production inputs advanced 11.3%.
- Transportation and warehousing services increased 2.3%, including a 2.0% rise in freight trucking prices.
