Minnesota Manufacturing Index June 2026 – Special Edition: Raw Material Cost Trends

Minnesota manufacturers saw some relief in June as overall Producer Price Index (PPI) declined 2.0% following three consecutive months of increases. While the pullback may signal that the significant cost increases seen earlier in 2026 are beginning to ease, manufacturers should continue to monitor the data closely. The report notes that one month of declining PPI is not enough to establish a trend, and July and August data will be important indicators for the remainder of 2026.

Raw material cost pressures remain significant across several key categories. Metals and metal products have increased 16.7% over the past year, with nonferrous metals up 38.5% and copper and copper products up 29.7%. Fuels remain another major source of inflationary pressure, with refined petroleum products increasing 52.2% compared with June 2025. Chemicals and allied products have also accelerated, driven largely by plastic resins, materials and industrial chemicals.

Not every category is moving higher at the same pace. Lumber and wood products remain comparatively stable, while wood pulp has declined 8.7% over the past year. Natural gas has also fallen significantly, providing some offset to increases in petroleum and other energy-related costs.

For manufacturers, these shifting input costs reinforce the importance of proactive planning. Monitoring commodity trends can help businesses make more informed decisions around pricing, purchasing, inventory, budgeting and margin management. As the second half of 2026 unfolds, manufacturers that closely track their input costs and plan for multiple scenarios will be better positioned to respond to continued volatility.

Access the Minnesota Manufacturing Index June 2026: Raw Material Cost Trends