Flat Producer Prices Fuel Expectations of Fed Rate Freeze

US producer prices remained flat in July, following a revised 0.1% decline in June, according to the Labor Department's Bureau of Labor Statistics.

The Producer Price Index for final demand was unchanged, contrary to economists' expectations of a 0.2% rise.

Falling goods prices offset a modest increase in services costs, with goods prices declining 0.7% and energy prices dropping 3.1%.

Services costs rose 0.2%, boosted by a 6.5% jump in portfolio management fees.

Economists expect the Personal Consumption Expenditures price index to rise 0.1% in July, while the core PCE index is expected to increase 0.2%.