Shafaqna English- The July reading for U.S. producer prices registered no month‑over‑month change, driven by two opposing forces: a tangible drop in the prices of physical goods effectively neutralised a very modest uptick in service‑sector costs.
This net stagnation has, in turn, strengthened the prevailing view among financial market participants that the Federal Reserve will likely refrain from any policy rate adjustment when it convenes in September, as the data offer little evidence of pipeline inflationary pressure.
This producer price release, issued by the Labor Department on Thursday(13 Aug 2026), came on the heels of Wednesday’s consumer inflation report, which also pointed to relatively mild price increases at the retail level.
Taken together, these two consecutive inflation prints have led a broad consensus of economists to project similarly moderate outcomes for the Federal Reserve’s preferred inflation gauge – the Personal Consumption Expenditures price indexes – when July figures are calculated, implying that the disinflation trend remains on track.