Producer Prices Unchanged as Inflation Slows

The Producer Price Index for final demand (also known as wholesale prices) was unchanged over the month in July after edging down 0.1% in June. Over the year, producer prices increased 4.7%, down from the 5.5% gain in June. Meanwhile, prices for final demand excluding foods, energy and trade services climbed 4.7% from July 2025, down from the 5.0% increase in June.

Within final demand, prices for services moved up 0.2% in July, after rising 0.5% in June. Meanwhile, prices for goods declined 0.7% after falling 1.4% in June. Within the final demand services index, margins for portfolio management jumped 6.5% in July. Within the final demand goods index, prices for gasoline dropped 5.7%, accounting for more than half of the July decrease for the index. At the same time, prices for diesel fuel fell 6.7% over the month but surged 44.2% from July 2025.

Prices for processed goods for intermediate demand moved down 0.6% in July, after declining 1.1% in June. The decrease in the index was driven by a 3.1% drop in prices for processed energy goods. Over the year, prices for processed goods for intermediate demand advanced 9.9%, down from 11.3% in June.

Meanwhile, prices for unprocessed goods for intermediate demand declined 1.8% in July, after falling 6.4% in June. Within the index, prices for unprocessed energy materials decreased 7.4% in July. Further, prices for crude petroleum fell 11.9% but increased 14.6% from July 2025. In contrast, prices for natural gas jumped 10.4% in July but fell 5.4% year-over-year. Over the year, prices for unprocessed goods for intermediate demand climbed 7.1%, after jumping 10.3% in June.