This is the largest PPI advance since rising 1.7 percent in March 2022
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 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
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
- “I love the inflation”
- “Affordability is a hoax”
Q: So, which is it?
A: Both, obviously.
Q: Obviously?
A: Yes. Trump is always right.
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[…] October 15, 2026: Producer Prices Rise a Hot 1.3 Percent in September […]
[…] October 15, 2026: Producer Prices Rise a Hot 1.3 Percent in September […]
No Buster Poindexter “Hot Hot Hot!” thread music, Mish?
(Heavens no! Even David Johansson regretted it.)
Import prices up 1.1% (13.2% annualized) & export prices up 2.2% (26.4% annualized) in September according to the BLS.
WTI at $98.67 and rising as I key this in…
YIKES!
The FED runs it hot because it doesn’t want tax receipts to fall. It doesn’t want to contribute to larger fiscal deficits. If the trading desk doesn’t let reserves grow, then inflation will gradually fall. Reserves are still down by $203.840b since July 3rd, 2025.
Long day on the farm today, came in to see that WTI crude is at $97.50.
What happened to Trumps lowering energy costs?
FAILURE!
In Iran
In Ukraine and Russia simultaneously
In Venezuela
Who does Trump work for?
Israel, his closet case son-in-law Jared, etc.
I heard his boss’s name once. Bladimar Pukin’? Something like that.
I thought it sounded more “bb.”
Trump simply loves whatever is happening. It’s raining: he loves the rain. It’s sunny: he loves sunshine.
That’s why he loves the inflation when inflation is running rampant and he would have loved deflation had that been occurring.
In essence he is essentially saying everything that happens is according to his plans and there is nothing to worry about because he’s got it under control.
He has to take the opposite side of the question when it’s posed to him by the press, or else he has to insult them.
That’s a pretty decent assessment
Take credit for whatever is happening and spin it to sound good
Alternatively blame Biden
And the “Dumbocrats”
Paging Roy Cohn circa 1970s
On that playbook, also check out Murray Chotiner, who on the dark side of the equation, taught young Nixon sharp-elbowed politics of attack, blame and insult. Murray still had a desk quietly tucked away in Nixon’s admin in the 70s. I think Trump examined Nixon more than any other historical figure (madman theory, impounds of Congressional funds, bagmen, dirty tricks, unauthorized war).
that’s a good insight. a client of ours, a famous criminal psychiatrist, wrote a fascinating book, “nixon v nixon”, long ago. he also wrote a wonderfully chilling book, “confessions of son of sam”. berkowitz wrote him letters from attica, after the psychiatrist testified in his murder cases, that he was not insane. he knew exactly what he was doing. trump i think is the greatest actor of our generation. and also an obvious narcissist. he also spent a lifetime destroying everything around him, from his huge inheritance he received in his mid 20s, to all his business partners and wives and even his brother. he’s a fascinating villain. he’s the amerikan empire’s nero. a mad man. fiddling. and also diddling with epstein for decades.
“Note that we are heading into midterm elections with gasoline and diesel prices rising. Other prices will follow.“
Excellent analysis. Diesel is the “pig in the python” and when that snake poops its gonna sh!t on every American.
Its Trump turtles all the way down and inflation all the way up!
Daily sticker shock at market and gas station is the best political ad.
The Dow’s response to this of going up 500 points makes me feel like a stranger in a strange land where logic does not apply.
Producers are going to raise prices on consumers increasing profits. What’s not to like? As long as your investment dollars are increasing faster than inflation in what you consume of course.
Raising prices does not automatically equal increased profits. It can simply be a response to increased input costs being passed on to consumers.
In many industries where there is real competition (ie not monopolies or oligopolies) businesses have had to eat rising input costs and thus have decreased profits. You can see that in certain industries which are having massive closure rates.
Very true. The consumer discretionary category of the S&P500 reflects this. Many of the stocks in this category have fallen dramatically. This sector, and others, is incredibly sensitive to rising inflation, climbing interest rates, and elevated gas prices, and is getting hammered.
Consumers are up against it, inflation having revealed to them that they are poorer than the original money printing and Covid loot implied. Most will have to curtail buying.
The up market is further suspicious as a companion to oil prices going up 2.5% to 96 today. That is negative for future profits. And exposes Trump’s Iranian disaster as not visibly improving.
I think we will soon have 3 carrier groups over there, with Marines. I hope escalation isn’t the October surprise. It would turn heads, but not pull diesel down. And havoc would hit markets. I fear escalation could be the December surprise anyway (it was, the last time we beefed up like this), or maybe Trump drops a few busters, declares victory, and pulls out. But what would Bibi say? A dump of (alleged) Trump/crony sex tapes would be so funny. Maybe Bibi figures he can pivot to Schumer.
Three carrier groups with their little marines, cautiously 300 km away. Really?
Could be a blow off.
The Fed is exercising an egregious dereliction of duty by not hiking rates. It is getting out of hand.
The bond auctions and their rates will force the Feds hand.
The can has been kicked into the cul-de-sac, neither monetary nor fiscal stimulus will work now as both cause more harm than good. One way or another the country will be forced to spend within its means. It will not be pretty in my opinion
USA = Atlantic City: a beautiful shore of shuttered casinos with the name TRUMP flickering on many. Not that he built the place either; he just showed up, claimed it, made some bad choices, put up a few garish decorations, and presided over its bankruptcy.
It took Volker 4 full years and a recession to bring down inflation.