Producer Price Index (PPI)
Latest data: August 1, 2026 · Updated automatically from official sources
The Producer Price Index tracks prices from the seller’s side of the transaction — what domestic producers receive for their goods and services, before retail markups and sales taxes. Because cost pressure at the factory gate eventually shows up on store shelves, the PPI is widely watched as an early signal for consumer inflation.
Latest readings
- Final Demand was up 5.4% year over year in August 2026, compared with 4.8% in the prior period and 2.7% a year earlier.
- All Commodities was up 9.9% year over year in August 2026, compared with 8.7% in the prior period and 2.6% a year earlier.
PPI, final demand
PPI, all commodities
Producer vs. consumer inflation
Recent readings
| Period | PPI final demand (YoY) | Change | All commodities (YoY) |
|---|---|---|---|
| August 2026 | 5.4% | +0.61 pp | 9.9% |
| July 2026 | 4.8% | -0.78 pp | 8.7% |
| June 2026 | 5.6% | -0.30 pp | 9.8% |
| May 2026 | 5.9% | +0.19 pp | 12.2% |
| April 2026 | 5.7% | +1.41 pp | 9.4% |
| March 2026 | 4.3% | +0.93 pp | 6.8% |
| February 2026 | 3.4% | +0.31 pp | 3.9% |
| January 2026 | 3.0% | -0.05 pp | 2.4% |
| December 2025 | 3.1% | -0.06 pp | 3.1% |
| November 2025 | 3.2% | +0.32 pp | 3.4% |
| October 2025 | 2.8% | -0.22 pp | 3.0% |
| September 2025 | 3.1% | +0.36 pp | 3.7% |
| August 2025 | 2.7% | — | 2.6% |
Key statistics
| Indicator | Latest | Year ago | 5-yr avg | Long-run avg | Record high | Record low | Data since |
|---|---|---|---|---|---|---|---|
| Final Demand (YoY) | 5.4% | 2.7% | 4.7% | 2.7% | 11.6% (Mar 2022) | -1.5% (Oct 2015) | 2010 |
| All Commodities (YoY) | 9.9% | 2.6% | 5.8% | 3.2% | 47.2% (Jul 1917) | -43.9% (Jun 1921) | 1914 |
| For comparison: CPI (YoY) | 3.4% | 2.9% | 4.5% | 3.5% | 14.6% (Mar 1980) | -3.0% (Aug 1949) | 1948 |
Final demand vs. all commodities
BLS publishes thousands of producer price indexes. Two are most useful for a big-picture view:
- PPI Final Demand is the headline measure. Introduced in 2014 (with data back to 2009), it covers goods, services and construction sold for personal consumption, capital investment, government purchases and export. Services — including trade margins earned by wholesalers and retailers — make up the majority of it.
- PPI All Commodities is the oldest continuous U.S. price series, dating back over a century. It covers goods only, so it is more sensitive to swings in raw materials such as fuel, metals and farm products.
Why PPI matters for consumer prices
Businesses facing higher input costs eventually try to pass them on. That is why a sustained rise in producer prices often precedes a rise in CPI by a few months, and why falling producer prices can signal relief ahead for consumers. The link is not mechanical, though: profit margins absorb some of the change, and services inflation — driven mostly by wages — is less tied to commodity costs.
Some PPI components also feed directly into the PCE price index. Airfares, medical services and portfolio-management fees in the PCE are measured using producer price data, so economists use the PPI release to fine-tune their PCE forecasts.
Release schedule
BLS publishes the PPI monthly, usually a day or two before or after the CPI. PPI data are revised four months after first publication to reflect late-reported prices, so recent months can change. econHQ shows year-over-year changes calculated from the published index levels.
Frequently asked questions
Does PPI lead CPI?
Often, but not always. Commodity-driven swings in producer prices tend to show up in consumer goods prices within a few months. Services inflation, which dominates CPI, depends more on wages than on producer prices.
What does "final demand" mean?
Final demand refers to goods and services sold to their final users — consumers, businesses investing in equipment, governments and foreign buyers — rather than inputs sold to other producers for further processing.
Related data
Data are retrieved automatically from the original statistical agencies (via the Federal Reserve Bank of St. Louis FRED database) and may be revised by the source. Year-over-year changes are calculated by econHQ. See About & methodology for details.