PPI Flat in July as Goods Prices Fall and Services Rise

The US Producer Price Index (PPI) remained unchanged in July, according to data released by the Labor Department's Bureau of Labor Statistics. This flat reading followed a revised 0.1% drop in June and was lower than the forecasted 0.2% rebound from economists polled by Reuters.

The PPI measures the average change in prices received by producers for their goods and services, excluding food and energy costs. In July, producer goods prices fell 0.7%, while service sector prices increased 0.2%. The 12-month PPI rose to 4.7% from June's 5.5%.

The data suggests that inflation could remain elevated despite the flat reading in July. This has added to the case for the Federal Reserve to keep interest rates unchanged at its September policy meeting, which is scheduled for September 15-16. The Fed currently holds its benchmark overnight interest rate between 3.50% and 3.75%.