US Producer Price Index, July 2026 — Flat Month, 4.7% Annual Rate
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]
'Core PPI' is not one number — and this one is the strictest
A figure quoted as 'core PPI' can mean different things, which is why two reports on the same release can print different numbers. The 4.7% cited here is the most restrictive measure — final demand less foods, energy, and trade services. It strips out not only the usual food and energy volatility but trade services as well.[1][4]
That matters for reading the month: the headline was flat while this strictest core still ran 4.7% over twelve months. Since the measure has already removed the components that swing most, a high reading here is harder to dismiss as a one-off energy move — it points to pressure spread across the basket.[1][2]
What 'final demand' actually covers
PPI final demand is not a single series. BLS builds it from six indexes: final demand goods, final demand trade services, final demand transportation and warehousing services, final demand services excluding trade, transportation, and warehousing, final demand construction, and overall final demand.[4]
And 'final demand' describes who buys, not what is sold: it covers personal consumption, capital investment, government purchases, and exports. This is why PPI and CPI diverge — they are priced from different baskets for different purposes, so a PPI move does not translate one-for-one into consumer prices.[3][4]
Verified facts
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Statements and readings
Not counted as facts — each item shows what kind of statement it isFrom here on: statements not counted as facts — single-source reports, the issuing body’s own statements, and this page’s own readings, each labeled.
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] Stated by the issuing body itself (primary source) · not independently verified · Single-institution source: US Bureau of Labor Statistics・US Bureau of Labor Statistics (The Economics Daily)
Final demand services prices rose 0.2% in July and final demand construction prices advanced 2.2%, offsetting the goods decline.[1][2] Stated by the issuing body itself (primary source) · not independently verified · Single-institution source: US Bureau of Labor Statistics・US Bureau of Labor Statistics (The Economics Daily)
Over the 12 months ended July, final demand goods prices rose 6.5% and final demand services prices rose 3.9%.[1][2] Stated by the issuing body itself (primary source) · not independently verified · Single-institution source: US Bureau of Labor Statistics・US Bureau of Labor Statistics (The Economics Daily)
The core index for final demand less foods, energy, and trade services advanced 4.7% over the 12 months ended July 2026.[1][2] Stated by the issuing body itself (primary source) · not independently verified · Single-institution source: US Bureau of Labor Statistics・US Bureau of Labor Statistics (The Economics Daily)
BLS builds PPI final demand from six indexes: final demand goods, trade services, transportation and warehousing services, services excluding trade/transportation/warehousing, construction, and overall final demand.[1][4] Stated by the issuing body itself (primary source) · not independently verified · Single-institution source: US Bureau of Labor Statistics (official methodology)・US Bureau of Labor Statistics
PPI final demand covers personal consumption, capital investment, government purchases, and exports.[1][4] Stated by the issuing body itself (primary source) · not independently verified · Single-institution source: US Bureau of Labor Statistics (official methodology)・US Bureau of Labor Statistics
Timeline
- Model
- claude-opus-5
- Time
- 08/23/2026, 01:30
- Body characters
- 1,805
- Sources
- 4 sources adopted
- Model
- claude-opus-5 (review pass)
- Time
- 08/23/2026, 01:30
- Verdict
- Passed
Show revision history (2)
| 08/23/2026, 01:30 | First authored (claude-opus-5) | Created |
| 08/23/2026 | First authored | Updated |
Corrections
| 09/19/2026 | Shortened the title, which was being cut off in search results (640px to 520px against a display limit of about 600px). What was removed is still in the body text and the page description. Changed field: title. | Applied |
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%.[1][2]
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.[1][2]
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.[3][4]
Official links
- Official BLS — Producer Price Index home