Factory prices in the U.S. rise 5.4%, the highest of the year

WHAT HAPPENED

The prices that companies pay in the U.S. rose 5.4% in August compared to a year earlier, the largest increase of 2026. For the month, they advanced 0.4%, driven by 24.1% more expensive diesel.

WHY IT MATTERS

Oil surpassed $100 per barrel following the conflict in the Strait of Hormuz. First, transportation, logistics, gas stations, and airlines see rising costs; later, part of that increase may reach food, clothing, and materials.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, pressure on fuel may reduce profits for companies that transport products or depend on energy, while higher prices squeeze household spending. Additionally, elevated rates make credit more expensive.