US July PPI Rises 0.1% MoM, 2.2% YoY, Easing Inflation

Aug 13, 2024, 12:35 PM

The U.S. Producer Price Index (PPI) for July rose by 0.1% month-over-month and 2.2% year-over-year, both figures coming in below expectations of 0.2% and 2.3%, respectively. Core PPI, which excludes food and energy, remained flat month-over-month and increased by 2.4% year-over-year, also below estimates. This data indicates a moderation in inflationary pressures, providing the Federal Reserve with more room to potentially cut interest rates in September. The decline in services costs contributed to the lower-than-expected PPI figures, marking the first such decline this year. The annual pace is the lowest since April 2024.