Inflation pressures in the U.S. eased in July as producer prices rose less than expected, with a slight increase in the producer price index for final demand. Energy prices and food prices saw gains, while services prices fell. The report suggests the Fed may cut interest rates next month.
Key Points
Producer prices rose 0.1 percent in July
Energy prices and food prices saw gains, while services prices fell
Report suggests the Fed may cut interest rates next month
Pros
Producer prices rose just 0.1 percent in July, less than expected
Energy prices and food prices saw gains
Report suggests the Fed may cut interest rates next month
Cons
Services prices fell 0.2 percent, the biggest decline since March 2023