July producer prices held steady month-over-month, undershooting forecasts and reinforcing disinflationary trends after softer CPI data.
US producer prices were unchanged in July from June, missing the 0.2% increase expected by markets. The flat reading follows a revised 0.1% decline in June and marks the second consecutive month of cooling producer inflation.
Annual PPI growth slowed to 4.7% in July from 5.5% in June, below the 4.9% consensus. Core PPI, excluding volatile items, rose 0.2% month-over-month, down from a revised 0.4% in June, and matched expectations at 4.2% year-over-year.
The data follows Wednesday’s softer-than-expected CPI report, strengthening expectations that inflation is moderating. The US Dollar Index (DXY) extended losses, trading near 99.93 after the release.