US producer prices rise 0.4% in August, matching forecasts

September 10, 2026 at 05:43 PM1 min

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US producer prices rose 0.4% in August from July, matching economists' expectations, the Bureau of Labor Statistics reported Wednesday. Core producer prices, excluding food and energy, advanced 0.2%, slightly below the 0.3% forecast. The data comes ahead of Friday's consumer price index report and next week's Federal Reserve meeting.

Key Facts

US producer prices rose 0.4% in August from July, matching economists' expectations.
Core producer prices, excluding food and energy, advanced 0.2% in August, below the 0.3% forecast.
Year-over-year headline producer prices rose 5.4% in August, above the 5.3% estimate.
Markets price roughly 64% odds of a Federal Reserve rate hike at the September meeting scheduled for next week.

Producer Price Data

The Bureau of Labor Statistics released August producer price data on Wednesday. Headline producer prices increased 0.4% month-over-month, matching economists' expectations. The core reading, excluding food and energy, rose 0.2%, slightly below the 0.3% forecast. Year-over-year, headline prices advanced 5.4%, above the 5.3% estimate and July's revised 4.8%. Core inflation on an annual basis came in at 4.6%, in line with estimates but above July's 4.2%.

Federal Reserve Outlook

The producer price report precedes the monthly Consumer Price Index release due Friday. Economists expect headline CPI to tick up month-over-month while remaining flat at 3.4% year-over-year. Core CPI is projected to edge down to 2.4% on an annual basis. After Fed Chairman Kevin Warsh's hawkish speech at Jackson Hole last month, markets shifted toward expecting a 25-basis-point rate hike by year-end. Traders assign roughly 64% probability to a hike at the September meeting and about 90% odds of at least one hike by December.