Producer prices increase 0.4% in August as energy costs drive gains

The Producer Price Index for final demand (also known as wholesale prices) rose 0.4% in August, up from the 0.1% uptick in July. Over the year, producer prices increased 5.4%, up from the 4.8% gain in July. Meanwhile, prices for final demand excluding foods, energy and trade services climbed 4.7% from August 2025, consistent with the increase seen in July.

Within final demand, prices for services inched up 0.1% in August, after rising 0.2% in July. Meanwhile, prices for goods grew 1.1% after declining 0.4% in July. Within the final demand services index, prices for truck transportation of freight advanced 2.0%, a leading contributor for the 2.3% rise in prices for transportation and warehouse services. Within the final demand goods index, prices for diesel fuel surged 24.1%, accounting for more than one-third of the August increase. Moreover, prices for gasoline and diesel fuel are up 46.5% and 77.8% from August 2025, respectively.

Prices for processed goods for intermediate demand moved up 1.8% in August, after decreasing 0.4% in July. Nearly two-thirds of the gain in the index was attributable to the 24.1% jump in prices for diesel fuel. Over the year, prices for processed goods for intermediate demand advanced 11.5%, up from 10.1% in July.

Meanwhile, prices for unprocessed goods for intermediate demand rose 1.1% in August, after moving up 0.7% in July. Within the index, prices for unprocessed nonfood materials less energy increased 2.1%, accounting for nearly 60% of the gain in August. At the same time, prices for nonferrous scrap advanced 3.7% over the month and surged 34.1% from August 2025. Over the year, prices for unprocessed goods for intermediate demand jumped 12.8%, after climbing 9.6% in July.