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U.S. producer prices hold steady in July as goods costs fall

The Producer Price Index for final demand was flat in July, while goods prices declined 0.7% after a 1.4% drop in June.

Reported · Written up by our desk · Inflation

U.S. producer prices were unchanged in July, according to data released by the Bureau of Labor Statistics, as lower goods costs offset price increases in services and construction.

The Producer Price Index for final demand remained flat on a seasonally adjusted basis after falling 0.1% in June and rising 0.5% in May. On an unadjusted 12 month basis, final demand prices increased 4.7%.

In July, final demand goods prices declined 0.7% after dropping 1.4% in June, with energy prices down 3.1% led by gasoline, which fell 5.7%. Food prices also decreased, down 0.9%.

Those declines were offset by a 0.2% increase in final demand services and a 2.2% advance in construction prices, with services excluding trade, transportation and warehousing up 0.6%. The report may reduce pressure for a September rate increase, but the strength in services and construction left policymakers cautious about declaring inflation fully contained, ConnectCRE noted.

Latest closeGasoline (RBOB) $2.882 ▼8.1%

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