Prices for gasoline, jet fuel and home heating oil advanced. Margins for fuels and lubricants retailing decreased 11.3 percent. Prices for residential electric power fell 0.5 percent.

Prices for final demand transportation and warehousing services rose 2.3 percent. Final demand prices decreased 0.1 percent in June 2026.

Timeline

On July 1, 2026, the Federal Energy Regulatory Commission establishes an index level of Producer Price Index for Finished Goods minus 0.55% (PPI-FG-0.55%) for the five-year period beginning July 1, 2026, to determine annual changes to oil pipeline rate ceilings. The index for final demand less foods, energy, and trade services rose 0.4 percent in July 2026.

In August 2026, diesel fuel prices accounted for over one-third of the increase in the final demand goods index in August 2026. Prices for final demand energy increased 4.2 percent in August 2026. Prices for final demand energy accounted for over three-fourths of the rise in the final demand goods index in August 2026. For the 12 months ended in August 2026, prices for final demand less foods, energy, and trade services advanced 4.7 percent. Diesel fuel prices increased 24.1 percent in August 2026.

The Producer Price Index for final demand less foods, energy, and trade services rose 0.4 percent in July 2026 and 0.3 percent in June 2026. Final demand prices were unchanged in May 2026 and increased 0.2 percent in April 2026. Prices for final demand goods rose 1.1 percent in August 2026, while prices for final demand services increased 0.1 percent. The advance in goods was driven by a 4.2 percent increase in final demand energy prices, which included a 24.1 percent rise in diesel fuel. Prices for final demand foods increased 0.5 percent. Excluding energy, the final demand goods index was unchanged. The index for final demand less foods, energy, and trade services rose 0.2 percent in August 2026, the smallest advance since a 0.1 percent increase in January 2026. For the 12 months ended in August 2026, the final demand index increased 2.7 percent, the smallest 12-month rise since a 2.6 percent increase in August 2025. The 12-month change for final demand less foods, energy, and trade services was 4.7 percent, down from 4.8 percent in the previous month.

What's New

Producer Price Index is price index.

How Sources Differ

The U.S. Bureau of Labor Statistics Producer Price Index News Release USDL 26-1495 states that the Producer Price Index for final demand increased 0.4 percent in August 2026, seasonally adjusted.

Why It Matters

The Producer Price Index serves as a key indicator of wholesale inflation, tracking average changes in prices received by domestic producers. The August 2026 increase was driven largely by energy costs, with diesel fuel prices surging 24.1 percent. This volatility affects downstream pricing for transportation and warehousing services, which rose 2.3 percent during the same period.

The Federal Energy Regulatory Commission uses a variant of this index, specifically PPI-FG-0.55%, to set annual oil pipeline rate ceilings. The commission established this index level for a five-year period beginning July 1, 2026. The sharp rise in energy components of the PPI may influence future adjustments to these regulatory caps, though the specific impact remains an open question given the recent establishment of the formula.