Producer Price Index: 

The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand declined 0.1 percent in August 2025, following the 0.7% increase in July.

Prices for final demand services fell 0.2% while the index for final demand goods moved up by 0.1%.

The final demand index moved up 2.8 percent, the largest 12-month advance since climbing 3.5 percent in March 2025.

Figure 1:

Figure 1 shows the PPI for materials and components of construction, with the three-month moving average (3MMA) on the left-hand axis and monthly percent change of the 3MMA on the right. August’s 3MMA was 363.69, representing a change of +0.22% month over month (m/m).

Figure 2:

Figure 2 shows the PPI for materials and components of manufacturing, with the 3MMA on the left-hand axis and monthly percent change of the 3MMA on the right. August’s 3MMA was 271.09, representing a change of +0.76% m/m.

In August, prices for processed goods for intermediate demand rose 0.4 percent, marking the fifth consecutive monthly increase. Most of this gain came from processed materials excluding foods and energy, which also increased 0.4 percent. Prices for processed energy goods fell slightly, down 0.1 percent. Over the 12 months ending in August, prices for processed goods for intermediate demand rose 2.6 percent, the largest year-over-year increase since January 2023.

At Gerdau, we monitor the PPI – issued monthly by the U.S. Bureau of Labor Statistics – because it is an unbiased, reliable measure of inflation. The PPI can better inform business decisions by providing a framework for contract adjustment, forecasting, inventory valuation, and as an overall economic indicator.