Producer Price Growth Accelerates as Gasoline Prices Drive Increase
The Producer Price Index for final demand (also known as wholesale prices) rose 1.3% in September, up from the 0.5% advance in August. Over the year, producer prices increased 6.3%, up from the 5.6% gain in August. Meanwhile, prices for final demand excluding foods, energy and trade services climbed 5.0% from September 2025, up from the 4.8% increase in August.
Within final demand, prices for services grew 0.8% in September, after ticking up 0.2% in August. Meanwhile, prices for goods jumped 2.6%, the largest increase since the series began in December 2009, after moving up 1.1% in August. Within the final demand services index, margins for machinery and vehicle wholesaling advanced 3.9%, accounting for more than 20% of the rise in prices for final demand services. Within the final demand goods index, prices for gasoline surged 20.3%, accounting for half of the September increase. Moreover, prices for gasoline and diesel fuel are up 64.3% and 115.2% from September 2025, respectively.
Prices for processed goods for intermediate demand moved up 2.5% in September, after rising 1.8% in August. Nearly half of the gain in the index was attributable to the 21.0% jump in prices for diesel fuel. Over the year, prices for processed goods for intermediate demand advanced 14.1%, the largest yearly increase since August 2022 and up from 11.6% in August.
Meanwhile, prices for unprocessed goods for intermediate demand climbed 8.4% in September, after moving up 0.9% in August. Within the index, prices for unprocessed energy materials increased 22.2%, accounting for more than 80% of the gain in September. At the same time, prices for nonferrous metal ores advanced 2.3% over the month and surged 61.3% from September 2025. Over the year, prices for unprocessed goods for intermediate demand jumped 21.5%, after rising 11.5% in August.
