U.S. wholesale inflation hits 5.4% annually in August 2026

The Producer Price Index rose 0.4% in August on a seasonally adjusted monthly basis, the Bureau of Labor Statistics reported Thursday, putting the annual rate at 5.4% — the highest 12-month reading of 2026.

Energy prices drove much of the monthly gain. The index for final demand goods advanced 1.1% in August, with energy prices up 4.2%. Diesel fuel alone accounted for more than a third of the increase in final demand goods, jumping 24.1%. Gasoline and jet fuel prices also rose. Final demand services edged up just 0.1% for the month, lifted by a 2.3% rise in transportation and warehousing prices, while trade services fell 0.2%.

Stripping out food and energy, core PPI rose 0.3% in August, according to the BLS. The index for final demand less foods, energy, and trade services — a measure that excludes three volatile categories — rose 0.3% for the month and 4.7% over the prior 12 months.

The monthly figure matched analyst expectations, according to CNBC . The annual rate came in 0.1 percentage point above forecasts, according to CNBC.

Earlier in the production pipeline, price pressures were more pronounced. The index for processed goods for intermediate demand rose 1.8% in August and was up 11.5% over the prior 12 months. Unprocessed goods for intermediate demand climbed 1.1% for the month and 12.8% year over year. Services for intermediate demand rose 0.3% in August and 5.1% annually.

By production stage, prices for stage 1 intermediate demand — the earliest stage — increased 1.4% in August and 11.3% over 12 months. Stage 2 intermediate demand rose 0.8% for the month and 9.7% annually. Stage 4 intermediate demand, which is closest to final demand, rose 0.4% in August and 6.7% over the prior year.

The August report marks an acceleration from recent months. The annual PPI rate stood at 4.8% in July and had reached a high of 5.9% in May before retreating.

The next PPI report, covering September 2026, is scheduled for release on October 15, 2026.