US producer prices were unchanged in July, missing forecasts of a 0.2 percent monthly gain, while the annual pace slowed to 4.7 percent, below the 4.9 percent consensus. The Bureau of Labor Statistics released the Producer Price Index (PPI) data on August 13, 2026.
The index for final demand stood at 156.56 points in July, down from 156.61 points in June, according to TradingEconomics, which compiles the data from the Bureau of Labor Statistics. On a year-over-year basis, producer prices rose 4.7 percent, a sharp deceleration from the 5.5 percent recorded in June.
Core PPI, which excludes food and energy, rose 0.2 percent month over month, below the 0.3 percent expected, and 4.2 percent year over year, in line with the 4.2 percent consensus and down from 4.7 percent in June, according to investingLive.
"This is more evidence for a softer PCE inflation report later in the month and is a negative for the US dollar, which is down modestly on the headlines," wrote Adam Button of investingLive after the release. The US dollar traded modestly lower following the data.
The producer price report comes a day after July consumer inflation came in line with expectations: the CPI rose 3.4 percent year over year in July, according to TradingEconomics data. Producer price components feed into the personal consumption expenditures (PCE) deflator, the Federal Reserve's preferred inflation gauge: investingLive read the July figures as further evidence of a softer PCE report later this month.
Sources
- investingLive: [US July PPI 4.7% y/y vs 4.9% expected](https://investinglive.com/forex/us-july-ppi-4-7-y-y-vs-4-9-expected/)
- TradingEconomics: [United States Producer Prices](https://tradingeconomics.com/united-states/producer-prices)
