September 2026 PPI Surges 1.3% as Energy and Gasoline Prices Soar
U.S. producer prices surged 1.3% in September 2026 and 6.3% yearly, led by energy, gasoline, goods, transport and widening trade margins as inflation broadened.
Summary
The U.S. Bureau of Labor Statistics said the Producer Price Index for final demand rose a seasonally adjusted 1.3% in September 2026, accelerating from 0.5% in August and 0.2% in July. It was the largest monthly increase since March 2022. Unadjusted annual inflation reached 6.3%, the highest since December 2022. Final demand excluding foods, energy and trade services increased 0.5% monthly and 5.0% annually. May through August data were revised for late reports and respondent corrections.
Goods prices jumped a record 2.6%, with energy up 10.8% and accounting for more than 80% of the increase. Gasoline surged 20.3% and generated half the goods advance, while foods rose 1.2% and goods excluding food and energy gained 0.3%. Services increased 0.8%, including trade margins up 1.4%, transportation and warehousing up 3.4%, and other services up 0.3%. Machinery and vehicle wholesaling margins rose 3.9%, while automotive fuel retailing margins fell 30.3% and chicken egg prices dropped 39.7%.
Intermediate processed goods rose 2.5% monthly and 14.1% annually, unprocessed goods climbed 8.4% and 21.5%, and services advanced 0.9% and 6.3%. Processed energy increased 10.2%, unprocessed energy materials 22.2%, diesel fuel 21.0%, and crude petroleum 28.3%. Production stage prices rose 1.1% at stage 4, 1.1% at stage 3, 3.9% at stage 2, and 2.2% at stage 1, with respective annual gains of 7.9%, 7.7%, 13.9%, and 13.5%. October data are scheduled for November 13, 2026.
Positives
- Chicken egg prices fell 39.7% in September, providing a sharp offset within final demand foods.
- Automotive fuel and lubricant retailing margins dropped 30.3%, despite surging underlying energy prices.
- Commercial electric power prices declined for both final and processed intermediate demand.
- Securities brokerage, dealing and investment advice prices fell 2.9% within intermediate services.
- Goods excluding foods and energy rose only 0.3%, well below the 2.6% headline goods increase.
Risks & concerns
- Final demand prices rose 1.3% monthly and 6.3% annually, the strongest readings since March 2022 and December 2022, respectively.
- Final demand energy jumped 10.8%, accounting for more than 80% of the record 2.6% goods increase.
- Gasoline prices surged 20.3%, producing half of September's final demand goods advance.
- Unprocessed intermediate goods climbed 8.4% monthly and 21.5% annually as crude petroleum jumped 28.3%.
- Core final demand excluding foods, energy and trade services rose 5.0% annually, indicating inflation extended beyond volatile categories.
- Transportation and warehousing services increased 3.4%, while truck freight and airline passenger services also became more expensive.
