US Producer Prices Plunge as July PPI Crashes to 4.7%, Undershooting Forecasts

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US Producer Prices Plunge as July PPI Crashes to 4.7%, Undershooting Forecasts

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US producer prices were flat in July as the annual Producer Price Index slowed to 4.7% from 5.5% in June, undershooting Wall Street forecasts of 5%, according to Bureau of Labor Statistics data released August 13, 2026. The month-over-month headline figure held steady at 0.0%, driven lower by a 0.7% drop in final demand goods prices and a 3.1% decline in energy costs, including a 5.7% drop in gasoline prices. Services prices ticked up 0.2%, boosted by a 6.5% surge in portfolio management fees. Core PPI, excluding food, energy, and trade services, rose 0.4% monthly and 4.7% annually. The report follows July CPI showing headline inflation at 3.4% and core CPI at 2.5%, reducing market expectations for a Federal Reserve rate hike in September. Separate Treasury data showed the adjusted July budget deficit widened to $333 billion amid lower customs revenue projections.

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US producer prices were flat in July as the annual Producer Price Index slowed to 4.7% from 5.5% in June, undershooting Wall Street forecasts of 5%, according to Bureau of Labor Statistics data released August 13, 2026. The month-over-month headline figure held steady at 0.0%, driven lower by a 0.7% drop in final demand goods prices and a 3.1% decline in energy costs, including a 5.7% drop in gasoline prices. Services prices ticked up 0.2%, boosted by a 6.5% surge in portfolio management fees. Core PPI, excluding food, energy, and trade services, rose 0.4% monthly and 4.7% annually. The report follows July CPI showing headline inflation at 3.4% and core CPI at 2.5%, reducing market expectations for a Federal Reserve rate hike in September. Separate Treasury data showed the adjusted July budget deficit widened to $333 billion amid lower customs revenue projections.

Published 2026-08-13 13:33:45 UTC · Published by JQJO

Prepared by Mahnoor A. · AI assisted

More context

Timeline

On July 15 2026 BLS reported June PPI fell 0.3 percent.
On August 12 2026 July CPI showed headline inflation cooled to 3.4%.
On August 13 2026 8:30am ET BLS published July PPI dataset showing flat growth.
On August 13 2026 annual headline PPI rate dropped to 4.7 percent.
On August 13 2026 energy PPI fell 3.1 percent in single month.
On August 13 2026 core PPI posted 0.4 percent month-over-month increase.
On August 13 2026 Treasury reported adjusted July deficit of $333 billion.
On August 13 2026 CBO lowered annual customs duties projections by $250B.
Federal Reserve officials will hold September interest rate policy meeting.
Energy market movements will determine third-quarter corporate earnings margin trajectory.

Why it matters

Immediate US inflation relief provides Federal Reserve room to hold. Long-term sticky core services inflation complicates reaching Fed 2% target. Affected groups: US consumers, energy producers, bond market traders, Federal Reserve. Prioritize official BLS releases and verified financial reporting across channels.

Coverage notes

Left: Highlights cooling wholesale prices as evidence of successful economic moderation. Center: Focuses on flat headline PPI, energy drops, and Fed policy. Right: Emphasizes core service inflation stickiness and widening federal budget deficits.