US wholesale prices were unchanged in July, providing another indication that inflationary pressures may be easing and strengthening expectations that the Federal Reserve could keep interest rates on hold.
The producer price index (PPI), which measures inflation at the wholesale level, was flat for the month, below economists' expectations for a 0.2% increase. The index fell 0.1% in June, a decline revised from the previously reported 0.3% drop, according to the Bureau of Labor Statistics.
Excluding food and energy, core PPI rose 0.2%, below the 0.3% increase forecast. Core PPI excluding trade services advanced 0.4%.
On an annual basis, headline PPI increased 4.7%, while core PPI rose 4.2%, based on unadjusted figures.
The latest data follows several indicators pointing to a moderation in inflation after price pressures accelerated earlier this year amid the Iran war and President Donald Trump's tariffs.
Services prices increased 0.2% in July, driven by a 6.5% surge in portfolio management costs, a category that can record unusually large increases at the beginning of each quarter due to reporting requirements.
Goods prices declined 0.7%, supported by a 3.1% drop in energy prices, including a 5.7% fall in gasoline prices. Food prices also declined 0.9%, while core goods prices increased 0.1%.
The data followed Wednesday's consumer price index report, which showed consumer prices rose 0.1% in July as lower energy costs helped ease inflationary pressures. However, annual headline inflation remained elevated at 3.4%, well above the Fed's target.
Core consumer inflation increased 0.2% on a monthly basis and 2.5% annually, returning to its level before the start of the war.
Meanwhile, initial jobless claims rose by 9,000 to a seasonally adjusted 209,000 in the week ended 8 August, exceeding economists' expectations for 202,000.