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Producer prices for final demand rose 0.4% in August; the 12-month rate rose to 5.4%
Final demand rose 0.4% seasonally adjusted (prior month +0.1%). Over 12 months it rose 5.4% (prior 4.8%). Less foods and energy: +0.2% on the month, 4.6% over 12 months. Less foods, energy, and trade services: +0.3% and 4.7%.
Q1 What did producer prices do in August?
Seasonally adjusted, final demand rose 0.4% in August after +0.1% in July. Goods rose 1.1%; services rose 0.1%. Within goods, energy rose 4.2% and foods rose 0.1%. Within services, trade margins fell 0.2%.
| Component | Aug SA | Jul SA | 3-mo ann. | 6-mo ann. | 12-mo NSA |
|---|---|---|---|---|---|
| Final demand | +0.4% | +0.1% | +1.4% | +5.6% | +5.4% |
| Final demand less foods and energy | +0.2% | +0.3% | +3.4% | +3.7% | +4.6% |
| Final demand less foods, energy, and trade services | +0.3% | +0.4% | +3.3% | +4.8% | +4.7% |
| Final demand goods | +1.1% | −0.4% | −3.0% | +11.1% | +7.7% |
| Foods | +0.1% | −0.9% | −5.4% | −2.3% | +0.1% |
| Energy | +4.2% | −1.8% | −17.5% | +48.8% | +24.4% |
| Goods less foods and energy | +0.4% | +0.2% | +3.4% | +5.3% | +5.1% |
| Final demand services | +0.1% | +0.2% | +3.1% | +3.3% | +4.5% |
| Trade services | −0.2% | −0.1% | +3.5% | +0.1% | +4.5% |
| Transportation and warehousing services | +2.3% | −1.1% | +3.3% | +19.2% | +13.0% |
| Services less trade, transportation, and warehousing | 0.0% | +0.5% | +2.9% | +3.0% | +3.5% |
| Final demand construction | 0.0% | +2.2% | +9.4% | +4.8% | +5.3% |
Trade services measure changes in the margins wholesalers and retailers receive, not the prices of the goods they sell.
Q2 What makes up the 5.4% 12-month rate?
Each piece’s contribution is its weight times its price change; the seven pieces add to the 12-month change. Largest: services less trade, transportation, and warehousing +1.55pp, energy +1.33pp, goods less foods and energy +0.94pp. Sum +5.44pp vs the index’s +5.44%.
Services are 68.3% of final demand
Q3 What happened earlier in the pipeline?
Intermediate demand covers goods and services sold to businesses as inputs. In August, processed goods rose 1.8%, unprocessed goods rose 1.1%, and services rose 0.3% (seasonally adjusted).
| Stage | Aug SA | Jul SA | 3-mo ann. | 12-mo NSA | 12-mo Jul |
|---|---|---|---|---|---|
| Processed goods for intermediate demand | +1.8% | −0.4% | +1.5% | +11.5% | +10.1% |
| Unprocessed goods for intermediate demand | +1.1% | +0.7% | −17.7% | +12.8% | +9.6% |
| Services for intermediate demand | +0.3% | +0.1% | +4.8% | +5.1% | +4.9% |
Q4 Where does this sit in history?
BLS’s final demand index begins in November 2009, so its 12-month rate goes back to November 2010. At 5.4%, it is the highest since June 2026, at or above 87% of the 174 months on record. For longer context, finished goods (the headline PPI before 2014) is up 6.6%, the highest since May 2026 and at or above 84% of months since 1948. All commodities, the oldest PPI, is up 9.9%, the highest since May 2026 and at or above 85% of months since 1914. (COVID months Mar 2020–Jun 2021 left out of the rankings.)
| Decade | Finished goods avg | Low | High | Fin. goods core avg | All commodities avg |
|---|---|---|---|---|---|
| 1940s (partial) | 2.6% | -5.2% | 10.0% | — | 7.5% |
| 1950s | 1.9% | -3.9% | 13.2% | — | 2.0% |
| 1960s | 1.4% | -1.2% | 4.9% | — | 1.2% |
| 1970s | 7.5% | 2.1% | 19.6% | 8.5% | 8.4% |
| 1980s | 4.0% | -2.5% | 14.9% | 4.6% | 3.7% |
| 1990s | 1.6% | -1.7% | 7.0% | 1.8% | 1.1% |
| 2000s | 2.7% | -6.9% | 9.9% | 1.6% | 3.5% |
| 2010s | 1.8% | -4.5% | 7.2% | 1.9% | 1.6% |
| 2020s (partial) | 4.4% | -5.3% | 18.3% | 3.8% | 5.2% |
Q5 How have goods and services moved over five years?
Since August 2021, the 12-month rate for final demand services ran from 1.8% to 9.4% and for goods from -4.3% to 17.6%. Energy, not charted, ran from -23.9% to 52.9% and is 24.4% now.
Q6 Is the recent pace above or below the 12-month rate?
Annualized from seasonally adjusted indexes, final demand less foods and energy rose at 3.4% over 3 months and 3.7% over 6, both below its 4.6% 12-month rate. Final demand: 1.4% (3-mo), 5.6% (6-mo), 5.4% (12-mo).
Final demand less foods and energy, pace
Q7 What did BLS revise?
BLS revises PPI for four months after first publication; May through August 2026 are still preliminary. Against the previous release as we stored it, 36 of 36 values for those months now read differently:
| Series (SA) | Month | 1-mo, previous release | 1-mo now | Index, previous | Index now |
|---|---|---|---|---|---|
| Final demand | Apr 2026 | +1.1% | +1.1% | 156.076 | 156.061 |
| Final demand | May 2026 | +0.5% | +0.5% | 156.783 | 156.864 |
| Final demand | Jun 2026 | −0.1% | −0.1% | 156.607 | 156.667 |
| Final demand | Jul 2026 | 0.0% | +0.1% | 156.563 | 156.784 |
| Final demand less foods and energy | Apr 2026 | +0.7% | +0.7% | 153.609 | 153.594 |
| Final demand less foods and energy | May 2026 | −0.1% | 0.0% | 153.473 | 153.567 |
| Final demand less foods and energy | Jun 2026 | +0.4% | +0.4% | 154.076 | 154.183 |
| Final demand less foods and energy | Jul 2026 | +0.2% | +0.3% | 154.450 | 154.592 |
| Final demand less foods, energy, and trade services | Apr 2026 | +0.5% | +0.5% | 141.146 | 141.152 |
| Final demand less foods, energy, and trade services | May 2026 | +0.8% | +0.8% | 142.256 | 142.240 |
| Final demand less foods, energy, and trade services | Jun 2026 | +0.1% | +0.2% | 142.410 | 142.474 |
| Final demand less foods, energy, and trade services | Jul 2026 | +0.4% | +0.4% | 142.909 | 143.013 |
| Goods less foods and energy | Apr 2026 | +0.7% | +0.7% | 153.108 | 153.095 |
| Goods less foods and energy | May 2026 | +0.8% | +0.7% | 154.294 | 154.186 |
| Goods less foods and energy | Jun 2026 | +0.2% | +0.2% | 154.538 | 154.563 |
| Goods less foods and energy | Jul 2026 | +0.1% | +0.2% | 154.743 | 154.895 |
| Final demand services | Apr 2026 | +0.8% | +0.8% | 155.194 | 155.178 |
| Final demand services | May 2026 | −0.3% | −0.2% | 154.683 | 154.836 |
| Final demand services | Jun 2026 | +0.5% | +0.5% | 155.406 | 155.543 |
| Final demand services | Jul 2026 | +0.2% | +0.2% | 155.715 | 155.862 |