EL7.AI
Central BanksHigh ImpactUpdated×2•Originally published 10 September 2026•Updated 10 September 2026•
2 min read

U.S. Producer Prices Rise 0.4% as Energy Costs Climb Before Fed Meeting

Key Facts

1Final-demand producer prices rose 0.4% in August and 5.4% annually after a 0.1% July increase.
2Goods prices rose 1.1% and services 0.1%, while energy advanced 4.2% and diesel fuel jumped 24.1%.
3The measure excluding food, energy and trade services rose 0.3% monthly and 4.7% annually after a 0.4% July increase.
4Unemployment held at 4.1%, payrolls rose by 162,000 jobs, and wages increased 0.3% monthly and 3.1% annually.
5The FOMC meets on September 15-16 in a meeting associated with a Summary of Economic Projections.

The U.S. Producer Price Index for final demand rose 0.4% in August after a 0.1% increase in July and was 5.4% higher than a year earlier, the Bureau of Labor Statistics said. The reading keeps price pressure in focus ahead of the Federal Reserve meeting.

Goods led the monthly increase, with prices up 1.1%, compared with a 0.1% rise in services prices. Final-demand energy prices advanced 4.2%, while diesel fuel prices jumped 24.1%.

A measure excluding food, energy and trade services rose 0.3% in August after increasing 0.4% in July and was up 4.7% from a year earlier. The increase in that measure indicates that the advance was not confined to energy components, although energy played a prominent role in the goods increase.

In a separate report for August, unemployment held at 4.1%, while nonfarm payrolls increased by 162,000 jobs. Average hourly earnings also rose 0.3% from July and 3.1% from a year earlier.

The Federal Open Market Committee meets on September 15-16 under Chair Kevin Warsh. The meeting is associated with a new Summary of Economic Projections, giving markets updated information on officials' estimates for growth, inflation and the policy-rate path.

The PPI measures changes in prices received by domestic producers, while the Consumer Price Index measures price changes from the purchaser's perspective, so the two gauges are not interchangeable. Given the Fed's mandate of price stability and maximum employment, the producer-price report is one input alongside labor data and other inflation indicators rather than a mechanical signal for a particular decision.