US Producer Inflation Drops To Four-Month Low As PPI Meets Cooling Trend

July PPI Beats Estimates, Extends Cooling Streak

The United States Producer Price Index (PPI) for July 2026 came in at 4.7% year-over-year, according to data released by the Bureau of Labor Statistics on August 13. The print beat the market consensus estimate of 4.9% and marked the lowest level of inflationary pressure on wholesalers in four months, continuing a gradual softening trend in pipeline prices.

The BLS had scheduled the July PPI release for 8:30 AM ET on August 13, 2026. The report follows a June reading in which final demand prices rose 5.5% year-over-year, meaning July's 4.7% print represents a notable step down in annual wholesale inflation.

What the Data Means for Markets and the Fed

The PPI tracks the average change in selling prices received by domestic producers for their goods and services. Because producers typically pass cost increases along the supply chain over time, a softening PPI is widely watched as a leading indicator of future consumer price relief.

The cooler wholesale reading arrives a day after July's Consumer Price Index (CPI) data, which showed headline consumer inflation rising 3.4% year-over-year, down from 3.5% in June. Together, both reports point to a broadening disinflationary trend across the US economy. The Federal Open Market Committee does not meet again until September, giving policymakers additional time to assess whether the cooling trend is durable before making any rate decisions.

For crypto markets, easing inflation data has historically supported risk appetite, as it reduces the likelihood of further monetary tightening. Traders will be watching closely to see whether the softer PPI feeds into broader market sentiment in the sessions ahead.

Sources:
US Bureau of Labor Statistics: Producer Price Index
US Bureau of Labor Statistics: Consumer Price Index Summary, July 2026