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Wholesale prices were flat in July, below expectations for 0.2% increase
CNBC • • business
Key Points:
- The Bureau of Labor Statistics reported that wholesale costs for goods and services were flat in July, with the producer price index (PPI) unchanged and below expectations, signaling easing inflation pressures.
- Core PPI, excluding food and energy, rose 0.2% for the month, slightly below forecasts, while goods prices fell 0.7%, helped by declines in energy and food prices.
- On an annual basis, the headline PPI increased 4.7%, and core PPI rose 4.2%, reflecting a slowdown in inflation after earlier spikes driven by geopolitical tensions and tariffs.
- Market reactions included positive stock futures and lower Treasury yields, with traders reducing the likelihood of a Federal Reserve rate hike in September, now expecting increases later in the year.
- Initial jobless claims rose slightly to 209,000 for the week ending August 8, exceeding estimates, indicating some softening in the labor market.
