US producer prices were flat in July 2026, following a revised 0.1% decline in June and defying market expectations for a 0.2% increase. A 0.2% rise in the services index and a 2.2% jump in construction prices offset a 0.7% drop in the index for goods.
Services prices advanced more slowly than in June (0.2% vs 0.5%), but portfolio management fees surged 6.5%, providing a substantial boost to the overall increase. In contrast, prices for transportation and warehousing services fell 1.8%.
Goods prices declined for the second consecutive month (-0.7% vs -1.4% in June), driven largely by a 3.1% fall in energy prices, including a 5.7% plunge in gasoline. Food prices also decreased by 0.9% (compared with a 0.5% drop previously), while prices for goods excluding food and energy inched up 0.1% (vs 0.2%).
On an annual basis, producer prices rose 4.7%, down sharply from 5.5% in June and below the consensus forecast of 4.9%. Meanwhile, core producer prices increased 0.2% on the month, undershooting expectations of 0.3%, while the annual core rate held at 4.2%, in line with forecasts.
