What the PPI inflation rate measures
The Producer Price Index (PPI) for final demand measures the prices that US businesses receive for the goods, services and construction they sell to final buyers – consumers, businesses investing in equipment, government and export customers. The Bureau of Labor Statistics publishes it monthly, usually around the middle of the month. The chart shows the change from a year earlier. The final-demand index starts in November 2009, so the 12-month rate begins in November 2010.
How to read this chart
PPI inflation swings more widely than consumer inflation because it is heavy in energy, food and traded goods whose prices move with commodity markets. Falling oil prices pushed it below zero in 2015 and again in spring 2020; the 2021–2022 surge in commodity, freight and goods prices drove it to the highest readings in the history of the series. Moves in the PPI often show up in consumer prices a few months later.
The latest reading in context
- At 6.3%, the latest reading is above its 5-year average of 4.6% and above its 10-year average of 3.5%.
- Of all 191 monthly readings since November 2010, 88% were lower than today’s and 11% were higher.
- Direction: up 0.8 points over the past month; up 2.1 points over the past six months; up 3.3 points over the past year.
- The highest value on record is 11.6% (March 2022, 4 years ago); the lowest is −1.5% (October 2015, 11 years ago).
- The full history spans 1 US recessions, shaded grey on the chart.
Why it matters
Producer prices are an early read on cost pressure in the supply chain. When businesses pay more for inputs and charge more to their customers, some of that usually reaches store shelves. Economists also use several PPI components, such as airfares, medical services and portfolio management fees, to forecast the PCE inflation rate that the Federal Reserve targets.
What moves the PPI inflation rate
- Energy prices, which flow through quickly to fuels, freight and chemicals
- Food and farm commodity prices
- Trade and transportation margins of wholesalers and retailers
- Import prices, the dollar exchange rate and tariffs
Key moments in its history
- 2015Turned negative as oil prices collapsed.
- Spring 2020Fell below zero again during the pandemic shutdowns.
- Mar 2022Peaked near 11.7%, the highest since the final-demand index began.
- 2023Dropped to around zero as goods and energy prices eased.
PPI Inflation Rate data tables
Average by decade
| Decade | Average | High | Low |
|---|---|---|---|
| 2020s (so far) | 4.1% | 11.6% | −1.4% |
| 2010s | 1.7% | 4.5% | −1.5% |
Last 12 months
| Period | Value | Change |
|---|---|---|
| Sep 2026 | 6.3% | +0.8 pts |
| Aug 2026 | 5.6% | +0.7 pts |
| Jul 2026 | 4.9% | −0.7 pts |
| Jun 2026 | 5.6% | −0.3 pts |
| May 2026 | 5.9% | +0.2 pts |
| Apr 2026 | 5.7% | +1.4 pts |
| Mar 2026 | 4.3% | +0.9 pts |
| Feb 2026 | 3.4% | +0.3 pts |
| Jan 2026 | 3.0% | −0.1 pts |
| Dec 2025 | 3.1% | −0.1 pts |
| Nov 2025 | 3.1% | +0.3 pts |
| Oct 2025 | 2.8% | −0.2 pts |
Monthly values. Decade figures are averages of the monthly values in each decade. The complete history is available as a CSV file.
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PPI Inflation Rate: questions and answers
What is the difference between PPI and CPI?
The CPI measures prices paid by consumers, including imported goods and housing costs. The PPI measures prices received by US producers, covers sales to businesses and government as well as consumers, and leaves out imports and rent.
Does PPI predict CPI?
Partly. Big moves in energy and goods prices tend to show up in the PPI first and reach consumer prices weeks or months later, but services such as rent, which dominate the CPI, are barely covered by the PPI.
Why does this chart start in 2010?
The PPI for final demand, the headline measure since 2014, has data from November 2009. A 12-month change needs a year of history, so the first value is for November 2010.
Where does the data on this chart come from?
From the U.S. Bureau of Labor Statistics. ChartWidgets downloads the series (PPIFIS) from FRED, the Federal Reserve Bank of St. Louis database, and checks for new releases every day. The last update was on November 1, 2026.