Inflation Pressure Continues to Ease! US July PPI Rises Only 4.7% Year-on-Year, Below Expectations

The U.S. Bureau of Labor Statistics (BLS) released data on Thursday (13th), showing that the Producer Price Index (PPI) for July increased by 4.7% year-on-year, lower than the market expectation of 4.9% and a clear decline from the previous 5.5%. On a monthly basis, prices were flat at 0.0%, below the expected 0.2%; the prior month’s figure was revised upward from -0.3% to -0.1%.

Core PPI, which excludes volatile components such as energy, rose 4.2% year-on-year in July, in line with expectations and down from the previous 4.7%. Month-on-month, core prices increased by 0.2%, below the forecasted 0.3%; the prior month’s reading was revised up from 0.2% to 0.4%.

Following the data release, the dollar index rose slightly, currently trading at 99.97. U.S. stock futures showed minimal movement, with Nasdaq 100 futures holding near flat levels. The yield on the 10-year U.S. Treasury note rose briefly, now at 4.675%. Spot gold prices fell approximately $7, currently at $4,383.21 per ounce.

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