Hardware prices are climbing. Software prices are not. | CIOnomics: Software and Cloud Prices, Q4 2026

The short version

Computer equipment prices rose 22.5% in the year to August 2026, against 3.4% for consumer prices.
Software publishers' prices fell 2.2% over the same year, and are 5.0% below their October 2025 high.
Since December 2019, software prices are up 13% and hosting prices 12%. Consumer prices are up 29%.

+22.5%

Computer equipment prices, year to August 2026

−2.2%

Software publishers' prices, same year

+0.3%

Hosting and data processing prices, same year

+3.4%

Consumer prices, same year

1 · Software

Software prices have risen less than half as fast as everything else

The Bureau of Labor Statistics tracks the prices software publishers charge for their products. Between December 2019 and August 2026, that index rose 13%. Consumer prices rose 29% over the same period.

In the last year the software index fell 2.2%. Its high since 2019 came in October 2025, and it has dropped 5.0% since.

Prices for hosting and data processing, the industry that includes cloud infrastructure providers, rose 12% since December 2019, and 0.3% in the last year.

Software and hosting prices against consumer prices

Index, December 2019 = 100, monthly

Software publishersHosting and data processingConsumer prices

Source: Bureau of Labor Statistics, Producer and Consumer Price Indexes, via FRED (PCU511210511210, PCU518210518210, CPIAUCSL).

2 · Hardware

Computer equipment is where prices are rising

The producer price index for electronic computers and computer equipment rose 22.5% in the year to August 2026. Since December 2019 it is up 35%, more than consumer prices' 29%.

Most of that increase came in the last year.

Computer equipment prices against consumer prices

Index, December 2019 = 100, monthly

Computer equipmentConsumer prices

Source: Bureau of Labor Statistics, Producer and Consumer Price Indexes, via FRED (WPU115, CPIAUCSL).

What the data does not tell us

Why. These indexes record what prices did, not why. This report does not try to explain them.

What they measure. Producer price indexes track the prices sellers receive for a fixed set of products, adjusted when a product changes. They are national averages. A renewal can still rise: more seats, a new tier or a different bundle change the bill without changing the price the index tracks. This edition uses the figures published as of October 14, 2026.

What it means for a technology leader

Renewals. When a vendor cites inflation to justify an increase, the government's measure of software prices has risen 13% since December 2019, against 29% for consumer prices, and fell 2.2% in the last year.
Hardware budgets. Equipment refreshes cost more than a year ago: computer equipment prices rose 22.5% in a year, by this measure.
Cloud. Hosting prices rose 0.3% over the last year.

Figures you can quote

Each with its source

Computer equipment prices rose 22.5% in the year to August 2026. Software publishers' prices fell 2.2%.

Bureau of Labor Statistics, producer price indexes. CIOPages CIOnomics, Software and Cloud Prices, Q4 2026.

Since December 2019, software prices have risen 13%, less than half the 29% rise in consumer prices.

Bureau of Labor Statistics. CIOPages CIOnomics, Software and Cloud Prices, Q4 2026.

Hosting and data processing prices rose 0.3% in the year to August 2026.

Bureau of Labor Statistics, producer price index. CIOPages CIOnomics, Software and Cloud Prices, Q4 2026.

Download

The report and its data

The report (PDF) and the data appendix (Excel): every chart, every figure and the series behind them, sent to your work email.

Method and sources

How this was put together

Every figure comes from a published Bureau of Labor Statistics price index, downloaded from FRED, the St. Louis Fed's data service, on October 14, 2026. Changes are computed between the same months for every index. No figure is estimated or modeled.

Measure	Agency	Series	Frequency	Latest
Producer prices, software publishers	BLS	PCU511210511210	Monthly	Aug 2026
Producer prices, data processing, hosting and related services	BLS	PCU518210518210	Monthly	Aug 2026
Producer prices, electronic computers and computer equipment	BLS	WPU115	Monthly	Aug 2026
Consumer prices, all items	BLS	CPIAUCSL	Monthly	Sep 2026

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