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Producer prices for final demand rose 1.3% in September; the 12-month rate rose to 6.3%
Final demand rose 1.3% seasonally adjusted (prior month +0.5%). Over 12 months it rose 6.3% (prior 5.6%). Less foods and energy: +0.7% on the month, 5.0% over 12 months. Less foods, energy, and trade services: +0.5% and 5.0%.
Q1 What did producer prices do in September?
Seasonally adjusted, final demand rose 1.3% in September after +0.5% in August. Goods rose 2.6%; services rose 0.8%. Within goods, energy rose 10.8% and foods rose 1.2%. Within services, trade margins rose 1.4%.
| Component | Sep SA | Aug SA | 3-mo ann. | 6-mo ann. | 12-mo NSA |
|---|---|---|---|---|---|
| Final demand | +1.3% | +0.5% | +8.1% | +7.1% | +6.3% |
| Final demand less foods and energy | +0.7% | +0.2% | +5.2% | +4.9% | +5.0% |
| Final demand less foods, energy, and trade services | +0.5% | +0.3% | +5.1% | +5.5% | +5.0% |
| Final demand goods | +2.6% | +1.1% | +14.1% | +12.6% | +9.8% |
| Foods | +1.2% | −0.3% | −0.3% | +0.4% | 0.0% |
| Energy | +10.8% | +4.5% | +67.6% | +51.0% | +35.4% |
| Goods less foods and energy | +0.3% | +0.4% | +3.5% | +5.2% | +5.1% |
| Final demand services | +0.8% | +0.2% | +5.5% | +4.9% | +4.9% |
| Trade services | +1.4% | +0.2% | +5.6% | +2.8% | +4.7% |
| Transportation and warehousing services | +3.4% | +2.2% | +19.5% | +21.9% | +16.0% |
| Services less trade, transportation, and warehousing | +0.3% | 0.0% | +3.9% | +4.0% | +3.8% |
| Final demand construction | 0.0% | 0.0% | +9.3% | +4.7% | +5.4% |
Trade services measure changes in the margins wholesalers and retailers receive, not the prices of the goods they sell.
Q2 What makes up the 6.3% 12-month rate?
Each piece’s contribution is its weight times its price change; the seven pieces add to the 12-month change. Largest: energy +1.92pp, services less trade, transportation, and warehousing +1.64pp, goods less foods and energy +0.95pp. Sum +6.34pp vs the index’s +6.34%.
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 September, processed goods rose 2.5%, unprocessed goods rose 8.4%, and services rose 0.9% (seasonally adjusted).
| Stage | Sep SA | Aug SA | 3-mo ann. | 12-mo NSA | 12-mo Aug |
|---|---|---|---|---|---|
| Processed goods for intermediate demand | +2.5% | +1.8% | +17.0% | +14.1% | +11.6% |
| Unprocessed goods for intermediate demand | +8.4% | +0.9% | +41.5% | +21.5% | +11.5% |
| Services for intermediate demand | +0.9% | +0.7% | +7.4% | +6.3% | +5.7% |
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 6.3%, it is the highest since December 2022, at or above 90% of the 175 months on record. For longer context, finished goods (the headline PPI before 2014) is up 8.4%, the highest since May 2026 and at or above 89% of months since 1948. All commodities, the oldest PPI, is up 12.8%, the highest since September 2022 and at or above 90% 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) | 4.5% | -5.3% | 18.3% | 3.8% | 5.3% |
Q5 How have goods and services moved over five years?
Since September 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 35.4% 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 5.2% over 3 months and 4.9% over 6, above and below, respectively, its 5.0% 12-month rate. Final demand: 8.1% (3-mo), 7.1% (6-mo), 6.3% (12-mo).
Final demand less foods and energy, pace
Q7 What did BLS revise?
BLS revises PPI for four months after first publication; June through September 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 | May 2026 | +0.5% | +0.5% | 156.864 | 156.874 |
| Final demand | Jun 2026 | −0.1% | −0.1% | 156.667 | 156.683 |
| Final demand | Jul 2026 | +0.1% | +0.2% | 156.784 | 156.924 |
| Final demand | Aug 2026 | +0.4% | +0.5% | 157.411 | 157.662 |
| Final demand less foods and energy | May 2026 | 0.0% | 0.0% | 153.567 | 153.577 |
| Final demand less foods and energy | Jun 2026 | +0.4% | +0.4% | 154.183 | 154.198 |
| Final demand less foods and energy | Jul 2026 | +0.3% | +0.3% | 154.592 | 154.735 |
| Final demand less foods and energy | Aug 2026 | +0.2% | +0.2% | 154.842 | 155.115 |
| Final demand less foods, energy, and trade services | May 2026 | +0.8% | +0.8% | 142.240 | 142.242 |
| Final demand less foods, energy, and trade services | Jun 2026 | +0.2% | +0.2% | 142.474 | 142.468 |
| Final demand less foods, energy, and trade services | Jul 2026 | +0.4% | +0.5% | 143.013 | 143.182 |
| Final demand less foods, energy, and trade services | Aug 2026 | +0.3% | +0.3% | 143.406 | 143.555 |
| Goods less foods and energy | May 2026 | +0.7% | +0.7% | 154.186 | 154.231 |
| Goods less foods and energy | Jun 2026 | +0.2% | +0.2% | 154.563 | 154.575 |
| Goods less foods and energy | Jul 2026 | +0.2% | +0.2% | 154.895 | 154.890 |
| Goods less foods and energy | Aug 2026 | +0.4% | +0.4% | 155.481 | 155.498 |
| Final demand services | May 2026 | −0.2% | −0.2% | 154.836 | 154.837 |
| Final demand services | Jun 2026 | +0.5% | +0.5% | 155.543 | 155.559 |
| Final demand services | Jul 2026 | +0.2% | +0.3% | 155.862 | 156.052 |
| Final demand services | Aug 2026 | +0.1% | +0.2% | 156.033 | 156.387 |