US producer prices rose 0.4% month-over-month in August 2026, after an upwardly revised 0.1% increase in July, matching market expectations. This was the largest gain in three months, driven primarily by a 1.1% rise in goods prices following declines in each of the previous two months. Within goods, diesel fuel prices surged 24.1%, while prices for gasoline, jet fuel, home heating oil, candy and nuts, and tobacco products also moved higher. By contrast, residential electric power prices fell 0.5%.
On the services side, prices edged up 0.1%, led by a 2% increase in truck freight transportation. Additional increases were recorded in airline passenger services, legal services, hospital inpatient care, and automobile retailing.
On an annual basis, producer inflation accelerated to 5.4% in August from 4.8% in July, slightly above the consensus forecast of 5.3%. Excluding food and energy, producer prices rose 0.2% on the month and 4.6% on the year, compared with 0.3% and 4.3% respectively in the previous month and market expectations of 0.3% and 4.6%.
