Producer Price Index Rises .4% in August 2026 with Final Demand 5.4% From Last Year (Energy's Influence)

The Producer Price Index rose about 0.4% in August, showing that producer prices remain elevated. Prices excluding food, energy, and trade services increased 0.3% and are up 4.7% from a year earlier. Overall final producer prices are up 5.4% over the past year.

A few points on energy....

Energy costs are a major reason for the increase. This also raises an important economic question: should we prioritize the lowest-cost energy sources, or maintain a diverse energy mix to reduce exposure when prices change? As renewable energy costs continue to fall, that balance becomes even more important to think about. 

(Illustrative Only). 

Jack the Squirrel teaches
the young squirrels in the
forest how to be energy
self sufficient. Probably
out in Garden MI.
Maybe Hiawatha
National Forest

They do things like that
out there. 🙃

Cheaper nuts
are awesome!

The larger point is simple: energy costs do not stay in the energy sector—they work their way through the economy and affect the prices of many other goods and services. Keeping them low can improve the economy but how to do that is a debate. 

Producer Price Indexes – August 2026

• The Producer Price Index for final demand increased 0.4% in August, after rising 0.1% in July and falling 0.1% in June.
• Final demand goods prices increased 1.1%, while final demand services rose 0.1%.
• Energy prices were a major driver, with final demand energy prices increasing 4.2%. Diesel fuel prices jumped 24.1%.
• Prices for final demand less foods, energy, and trade services increased 0.3% in August and were up 4.7% over the previous 12 months.
• Overall, producer prices remain elevated, with final demand prices up 5.4% from August 2025. This suggests continued cost pressures for businesses, particularly from energy and transportation.

U.S. Bureau of Labor Statistics. (2026, September 10). Producer price indexes – August 2026. U.S. Department of Labor. https://www.bls.gov/news.release/ppi.nr0.htm