Producer Prices Rise A Hot 1.3 Percent In September

This is the largest PPI advance since rising 1.7 percent in March 2022

PPI Final Demand Month-Over-Month Percent Change

PPI September 2026

Please consider the BLS Producer Price Report for September 2026.

The Producer Price Index for final demand increased 1.3 percent in September. The September increase is the largest advance since rising 1.7 percent in March 2022.
In September, prices for final demand goods rose 2.6 percent, and the index for final demand services advanced 0.8 percent.
Prices for final demand less foods, energy, and trade services moved up 0.5 percent in September after increasing 0.3 percent in August.
Final demand prices moved up 0.5 percent in August and 0.2 percent in July.

PPI Final Demand Month-Over-Month Details

Final Demand: 1.3 percent
Final Demand Goods: 2.6 percent
Final Demand Services: 0.8 percent
Final Demand Food: 1.2 percent
Final Demand Less Food and Energy: 0.7 percent

Final Demand Synopsis

Final Demand Goods: Prices for final demand goods advanced 2.6 percent in September, the largest increase since data were first calculated in December 2009. Over 80 percent of the broad-based rise in September is attributable to the index for final demand energy, which jumped 10.8 percent. Prices for final demand foods and for final demand goods less foods and energy advanced 1.2 percent and 0.3 percent, respectively.
Goods Detail: Half of the September increase in the index for final demand goods can be traced to prices for gasoline, which jumped 20.3 percent. The indexes for diesel fuel, fresh and dry vegetables, jet fuel, residential electric power, and crude petroleum also rose. In contrast, prices for chicken eggs dropped 39.7 percent. The indexes for thermoplastic resins and materials and for commercial electric power also declined.
Final Demand Services: Prices for final demand services moved up 0.8 percent in September, the largest rise since advancing 0.8 percent in April. Nearly half of the broad-based September increase can be attributed to a 1.4-percent rise in margins for final demand trade services. The indexes for final demand transportation and warehousing services and for final demand services less trade, transportation, and warehousing also advanced, 3.4 percent and 0.3 percent, respectively.
Services Detail: Over 20 percent of the September increase in prices for final demand services can be traced to margins for machinery and vehicle wholesaling, which advanced 3.9 percent. The indexes for truck transportation of freight, food and alcohol wholesaling, traveler accommodation services, food retailing, and airline passenger services also rose. Conversely, margins for automotive fuels and lubricants retailing dropped 30.3 percent. The indexes for securities brokerage, dealing, and investment advice and for chemicals and allied products wholesaling also fell.

PPI Final Demand Year-Over-Year

PPI Final Demand Year-Over-Year Percent Change

PPI Final Demand Year-Over-Year Notes

On an unadjusted basis, the index for final demand climbed 6.3 percent for the 12 months ended in September, the largest 12-month increase since moving up 6.4 percent in December 2022.
For the 12 months ended in September, the index for final demand less foods, energy, and trade services rose 5.0 percent.
Final Demand Goods: 9.8 percent, matching the largest increase since 10.5 percent in October 2022.
Final Demand Services: 4.9 percent. Excluding 5.0 percent in April 2026, this is the highest since 5.3 percent in December 2022.

PPI Final Demand Services

PPI Final Demand Services Month-Over-Month and Year-Over-Year Percent Change

Services Key Points

Services represent a dominant portion of the Producer Price Index (PPI) for final demand, accounting for approximately 68% to over 70% of total PPI coverage as of early 2026.
Services are often the primary driver of PPI inflation, significantly outweighing goods.
The trend in services is now ominous. Year-over-year services PPI is up 4.9 percent.

PPI Synopsis

What’s happening now is neither temporary nor random.

Prices declined following the memorandum of understanding (MOU) with Iran, opening the Strait of Hormuz. The strait is now closed again.

Price pressures will persist as long as the strait is closed. Additionally, Trump’s inane trade war with Canada and the rest of the world is adding to price pressures.

Looking Back and Ahead

Note that we are heading into midterm elections with gasoline and diesel prices rising. Other prices will follow.

But that’s OK because ….

Trump Loves the Inflation

Please note Trump Says “I Love the Inflation”, Literally

When asked if he is concerned about the latest inflation numbers that came out this morning [June 10], President Trump responded, “No, I love it. The numbers were great. You know what I really love? I love the inflation.”

Trump must be really happy with the latest PPI and CPI reports. What’s not to love?

“I love the inflation” is one hell of a sound bite. And it’s in context.

Two Amazing Statements