Ben AyersChris RupkeyFederal ReserveBureau of Labor StatisticsFwdbondsNationwide Mutual Insurance Company

US wholesale inflation slowed more than expected in July; Producer Price Index rose 4.7% annually, flat on month, giving Fed more time

US wholesale inflation slowed more than expected in July, with the Producer Price Index rising 4.7% annually and remaining flat month-over-month, according to the Bureau of Labor Statistics. This deceleration may provide the Federal Reserve additional time to evaluate inflationary pressures ahead of upcoming meetings.

Bloomberg.com Bloomberg.com+2 sources13 August 2026 · 14:52 UTC
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US wholesale inflation decelerated in July, with the Producer Price Index (PPI) rising 4.7% annually, down from 5.5% in June, according to the Bureau of Labor Statistics. The PPI was flat month-over-month, following a 0.1% decline in June.12367

This slowdown in inflation is attributed to falling energy and food prices, which may give the Federal Reserve more time to assess economic conditions before making decisions on interest rates. Core PPI, excluding food and energy, rose 0.2% in July, marking a decrease to 4.2%, the lowest rate in four months.4

“Net, net, pipeline pressures at the lower stages of production are not adding to the inflation risks the consumer faces,” said Chris Rupkey, chief economist at Fwdbonds. The report indicates that wholesale costs for goods and services were flat, a positive sign for inflation.

Despite the cooling inflation, fuel prices remain a wild card due to ongoing geopolitical tensions, particularly the conflict in Iran. Ben Ayers, senior economist for Nationwide, noted that the latest PPI report may signal slower inflation as summer ends.

Market reactions included positive stock futures and lower Treasury yields, with traders reducing the odds of a September rate hike by the Federal Reserve. Expectations have shifted towards potential rate hikes in October or December instead.5

Overall, the report follows a trend of easing inflationary pressures after a spike earlier this year due to the Iran war and tariffs.

Key Insight
“Core PPI, excluding food and energy, rose 0.2% in July and slowed to 4.2% annually, the lowest in four months. Traders reduced odds for a September rate hike, now pricing in a move in October or December.”
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CuriousCats studied:
1
Bloomberg.comBloomberg.com
“US wholesale inflation decelerated in July by more than estimated as energy and food costs fell, likely giving the Federal Reserve more time to assess price pressures at upcoming meetings.”
Bloomberg.com →
2
CNN
“The Producer Price Index, which tracks prices changes for producers and manufacturers, increased 4.7% in the 12 months that ended in July. That was a slowdown from 5.5% in June, according to Bureau of Labor Statistics data released Thursday.”
CNN →
3
CNBCCNBC
“The producer price index was flat in July compared with expectations for a 0.2% increase. Core PPI rose 0.2%, below the 0.3% forecast.”
CNBC →
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