Political dysfunction, Producer Price Index for intermediate demand, and canoe views of Grand Lake Stream, Maine.
In this Kotok Report Quick Take, we talk about political dysfunction, the August 2026 Producer Price Index for intermediate demand report and its implications for inflation, and we share some canoe views of Grand Lake Stream, Maine.
Please click the video below to see and hear David today weigh in on the topics above, or skip past it straight to the PPI summary.
Our summary of the August 2026, the Producer Price Index for intermediate demand follows.
The PPI report showed that prices for processed goods increased 1.8 percent, unprocessed goods advanced 1.1 percent, and services rose 0.3 percent. This follows July 2026 figures where processed goods fell 0.6 percent, unprocessed goods declined 1.8 percent, and services grew 0.5 percent.
Monthly Breakdown of Intermediate Demand Changes
Detailed data from the U.S. Bureau of Labor Statistics (BLS) provides a clearer look at how prices fluctuated across the major intermediate sectors leading up to August 2026:
- Processed Goods for Intermediate Demand: This sector experienced a 2.6 percent increase from December 2025 through August 2026. During this time frame, monthly adjustments shifted significantly, ranging between a 1.0 percent drop and a 1.8 percent gain. For context, historical data shows a 12-month percent change of 11.3 percent earlier in June 2026.
- Unprocessed Goods for Intermediate Demand: Prices in this category rose by 1.9 percent from December 2025 to August 2026. This sector is characterized by sharper volatility, with monthly fluctuations swinging from a 6.5 percent decline to a 1.1 percent advance.
- Services for Intermediate Demand: Intermediate services recorded a more gradual 0.9 percent increase from December 2025 to August 2026. Monthly changes remained steady, moving between 0.1 percent and 0.8 percent.
Final Kotok note.
This PPI is “hot.” The ISM data confirm it (hat tip Bill Kennedy). IMO, many inflation estimates will be heading above 4%.
If you enjoy views of Maine, revisit last week’s commentary: “Camp Kotok Answers a Challenge, a Fire Saves America, and L-MAGA vs. MAGA”.
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