US producer prices rose in July amid a recovery in the cost of services, but the trend remained consistent as inflationary pressures moderated.
The Labor Department said on Friday that its producer price index for final demand rose 0.3% last month. Data for June was revised to show that the PPI was unchanged instead of rising by 0.1% previously reported.
In the 12 months through July, the producer price index rose 0.8% after rising 0.2% in June. The rebound occurred in the annual rate because prices were lower last year. Economists polled by Reuters had forecast the producer price index would rise 0.2 percent month-on-month and advance 0.7 percent year-on-year.
On Thursday, the government reported that consumer prices rose moderately in July, reinforcing expectations that the Federal Reserve is likely to keep interest rates unchanged next month. Since March 2022, the US central bank has raised its benchmark overnight rate by 525 basis points to the current range of 5.25%-5.50%.
(Reporting by Lucia Mutecani; Editing by Paul Simao)