Updated: 14-Aug-25 09:33 ET

July PPI

Updated: 14-Aug-25 09:33 ET

Highlights

• The index for final demand jumped 0.9% month-over-month in July (Briefing.com consensus: 0.2%) following an unchanged reading in June. The index for final demand, excluding food and energy, also increased 0.9% month-over-month (Briefing.com consensus: 0.2%) following an unchanged reading in June.
• With these readings, the index for final demand is up 3.3% year-over-year, versus 2.4% in June, while the index for final demand, excluding food and energy, is up 3.7%, versus 2.6% in June.

Key Factors

• The index for final demand goods rose 0.7% after ticking up 0.3% in June.
• The index for final demand services jumped 1.1%, its largest increase since March 2022, after decreasing 0.1% in June.
• The index for processed goods for intermediate demand moved up 0.8% after being unchanged in June.
• The index for unprocessed goods for intermediate demand increased 1.8% following a 2.6% increase in June.

Big Picture

• The key takeaway from the report, other than that it completely flies in the face of the relatively friendly CPI report, is that wholesale prices rose appreciably across all stages of production and for both goods and services. The concern will be that this inflation will register in the PCE Price Index and keep the Fed from being as aggressive with its rate cut approach as had been envisioned following the CPI data.

Category	JUL	JUN	MAY	APR	MAR
Final Demand	0.9%	0.0%	0.3%	-0.3%	-0.1%
Core (excluding ...)
Food and Energy	0.9%	0.0%	0.4%	-0.2%	0.2%
Food, Energy, and Trade	0.6%	0.0%	0.1%	-0.2%	0.1%
Final Demand Goods
Total	0.7%	0.3%	0.1%	0.0%	-0.9%
Energy	0.9%	0.9%	-0.4%	-0.3%	-3.9%
Finished Goods	0.5%	0.4%	0.3%	-0.2%	-1.3%
Final Demand Services
Total	1.1%	-0.1%	0.5%	-0.3%	0.2%
Trade	2.0%	-0.3%	1.5%	-0.3%	0.4%
Intermediate Demand
Processed	0.8%	0.0%	0.1%	0.3%	-0.1%
Unprocessed	1.8%	2.6%	-1.8%	-3.8%	-3.9%
Services	0.8%	0.1%	0.1%	-0.2%	0.3%