US Producer Price Index, July 2026 — Flat Month, 4.7% Annual Wholesale Inflation
US producer prices were flat in July 2026 as falling energy offset service gains, but final demand PPI still ran 4.7% above a year earlier, matching the core rate — wholesale inflation stays elevated.
A flat month masking sticky annual pressure
The July report showed a tug-of-war inside the index: cheaper energy — led by a 5.7% slide in gasoline — pulled final demand goods down 0.7%, while services edged up 0.2% and construction jumped 2.2%. The offsetting moves left the headline index unchanged from June.[1][2]
The 12-month picture was less comforting. Final demand PPI held at 4.7%, with goods up 6.5% on the year, and the core gauge excluding foods, energy, and trade services also at 4.7% — a sign that wholesale-level inflation remained well above the pace consistent with the Fed's 2% consumer inflation goal.[1][2][3]
Verified facts
Cross-checked against 2+ independent sourcesThis section contains facts cross-checked against multiple sources.
The Producer Price Index for final demand was unchanged in July 2026 on a seasonally adjusted basis.[1][3] 2 sources
Final demand PPI rose 4.7% for the 12 months ended July 2026.[1][2][3] 3 sources
Final demand goods prices fell 0.7% in July, driven by a 3.1% decline in final demand energy; gasoline prices dropped 5.7% and accounted for more than half of the goods decrease.[1][2] 2 sources
Final demand services prices rose 0.2% in July and final demand construction prices advanced 2.2%, offsetting the goods decline.[1][2] 2 sources
Over the 12 months ended July, final demand goods prices rose 6.5% and final demand services prices rose 3.9%.[1][2] 2 sources
The core index for final demand less foods, energy, and trade services advanced 4.7% over the 12 months ended July 2026.[1][2] 2 sources
Timeline
- Model
- claude-opus-5
- Time
- 08/23/2026, 01:30
- Tokens
- 8,000
- Sources
- 3 sources adopted
- Model
- claude-opus-5 (review pass)
- Time
- 08/23/2026, 01:30
- Tokens
- 3,000
- Verdict
- Passed
| 08/23/2026, 01:30 | First authored (claude-opus-5) | Created |
| 08/23/2026 | First authored | Updated |
Frequently asked
Did wholesale inflation cool in July 2026?
On a monthly basis yes — the headline index was flat, helped by a 3.1% drop in energy prices and a 5.7% fall in gasoline. But the 12-month rate stayed at an elevated 4.7%.
What kept the annual rate high?
Goods prices were up 6.5% over the year and services 3.9%. The core measure excluding foods, energy, and trade services also ran 4.7%, indicating broad rather than energy-driven pressure.
Why does PPI matter?
Producer prices capture what sellers receive at the wholesale level and often foreshadow consumer price trends, so the Fed and forecasters watch PPI alongside CPI when judging inflation's path.
Official links
- Official BLS — Producer Price Index home