Producer Prices Come in Lighter Than Expected, Fueling Anticipation of September Fed Rate Cut

Goods inflation surged while services inflation tumbled in July.

Production workers assemble car seats at the Bridgewater Interiors manufacturing plant in Warren, Mich., on March 8, 2004. Bill Pugliano/Getty Images

Producer prices—a metric of the prices paid by businesses for goods and services—rose less than market forecasts, suggesting that inflationary pressures might be dissipating heading into a key Federal Reserve policy meeting next month.

The Producer Price Index (PPI) rose by 0.1 percent in July, down from 0.2 percent in June, according to the Bureau of Labor Statistics (BLS). That came in below the consensus estimate of 0.2 percent.