PPI report
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The gist
US August PPI rose 0.4% for the month, with the annual rate at 5.4%.
The wholesale inflation print feeds into the Fed's September 15-16 rate decision.
Background
The Producer Price Index measures prices businesses pay before costs reach consumers, and the August report landed in a week when markets were already braced for two inflation readings. Inflation remains above 3% and is outpacing wage growth, while Brent crude broke through $100 intraday on September 9, keeping energy costs in focus. The PPI came a day before the August CPI report and just ahead of the Federal Reserve's September 15-16 meeting, making it a key input for the rate decision.
How it unfolded
- Sep 4, 2026Kiplinger notes the BLS would release PPI before Thursday's opening bell and CPI before Friday's, with the FOMC quiet period running September 5-17.
- Sep 8, 2026Bloomberg reports markets are bracing for the PPI report Thursday and the August CPI report Friday, both of which could move markets and affect the next Fed decision.
- Sep 9, 2026Brent crude breaks through $100 intraday; TradingKey previews August PPI expected at +0.4% month-over-month and core PPI at +0.3%.
- Sep 10, 2026The BLS releases August PPI: headline up 0.4% for the month, in line with the Dow Jones consensus, with the annual rate at 5.4%; core PPI rose 0.2% against a 0.3% forecast.
Who’s saying what
- Analysts
- TradingKey writes that higher-than-expected PPI could heighten September rate hike expectations, bolstering the dollar, lifting Treasury yields, and pressuring equities and gold, while softer data would ease rate pressures.
- Analysts
- TradingKey also cautions that there is a time lag in passing higher energy prices through to core services and final consumer prices, so PPI alone is not yet sufficient to confirm a broad re-acceleration of US inflation.
- Caution
- Fortune reports the inflation data could determine whether the Federal Reserve hikes rates soon, leaving Wall Street on edge, with inflation above 3% squeezing households and businesses.
- Expert
- BNY Wealth CIO Alicia Levine discusses the market's focus on the CPI and PPI reports ahead of the Fed meeting and how continued AI infrastructure spending is driving corporate earnings and broader economic growth.
Still unverified
The TradingKey preview's expectation that higher-than-expected PPI would bolster the dollar and pressure equities and gold is a forecast, not a confirmed outcome; the CNBC report on the actual PPI release is labeled breaking news and subject to updates.