The Producer Price Index for final demand was unchanged in July, the Bureau of Labor Statistics reported Thursday, as a drop in goods prices offset a modest rise in services. On an unadjusted basis, wholesale prices rose 4.7% over the 12 months ended in July, the BLS said.

Goods prices fell 0.7% for the month, driven by a 3.1% decline in energy costs, including a 5.7% slide in gasoline prices. Food prices dropped 0.9%. Services prices rose 0.2%, led by a 6.5% surge in the portfolio management index. Construction prices advanced 2.2%.

Excluding food and energy, core PPI rose 0.2% in July, according to CNBC. That came in below a 0.3% consensus estimate. Core PPI excluding trade services increased 0.4%, and the 12-month unadjusted rate for that measure also came in at 4.7%, according to the BLS. July’s flat monthly reading undershot the 0.2% consensus forecast, and came after a revised 0.1% dip in June; that June figure had initially been reported as a 0.3% decline.

“Net, net, pipeline pressures at the lower stages of production are not adding to the inflation risks the consumer faces,” Chris Rupkey, chief economist at Fwdbonds, said. “It counts as good news that for a second consecutive month, PPI final demand prices have not gone up adding to the cost of living crisis faced by Americans.”

Further along the supply chain, processed goods for intermediate demand fell 0.6% in July, weighed down by a 3.1% drop in processed energy goods, including a 6.7% decline in diesel fuel prices. Unprocessed goods fell 1.8%, with crude petroleum down 11.9%. Services for intermediate demand rose 0.5%, the BLS said. Over a 12-month period, processed goods for intermediate demand were up 9.9%, unprocessed goods up 7.1%, and intermediate services up 5.1%.

The report came one day after the BLS said the consumer price index rose 0.1% in July, with a headline annual rate of 3.4%, according to CNBC. Core consumer inflation came in at a 0.2% monthly increase and a 2.5% annual rate. Following both reports, market pricing for a Federal Reserve rate increase at the September meeting pulled back, with investors recalibrating expectations toward action later in the year, in October or December.

The next PPI report, covering August 2026, is scheduled for Thursday, September 10, according to the BLS.