Wholesale Prices Flat in July as Annual Cost Pressures Persist

U.S. wholesale prices were unchanged in July, offering some near-term relief for businesses, but the broader picture still showed persistent cost pressure in goods, transportation, construction and imports.

The Bureau of Labor Statistics reported on Aug. 13 that its Producer Price Index for final demand was flat from June to July, after falling 0.1% in June and rising 0.5% in May. Over the 12 months through July, final-demand prices increased 4.7%, down from a 5.5% annual increase in June.

Energy drove the monthly decline in goods

The calmer July reading was helped by lower prices for final-demand goods, which fell 0.7% during the month. Energy prices dropped 3.1%, including a 5.7% decline in gasoline prices. Final-demand food prices fell 0.9%, while goods excluding food and energy edged up 0.1%.

That monthly relief did not erase the accumulated increase. Final-demand goods were still 6.5% higher than a year earlier. Energy prices were up 18.2% over that period, while final-demand food prices were nearly unchanged, down 0.1%. Goods excluding food and energy rose 4.9%.

Transportation and construction remain costly

Final-demand services prices rose 0.2% in July. Transportation and warehousing services fell 1.8% during the month, but the category was still 10.0% higher than a year earlier. Trade services fell 0.1% in July and rose 2.4% over the year, while other final-demand services increased 3.9% annually.

Construction prices also moved higher. The final-demand construction index increased 2.2% in July and was up 5.2% from July 2025. Those increases can affect contractors, developers, public projects and businesses planning renovations or new facilities.

The figures do not mean that consumer prices will rise by the same amounts. Producer prices measure what U.S. producers receive for goods and services. Companies may absorb some cost increases, adjust operations, renegotiate contracts or pass along only part of an increase. The timing can also vary by industry.

Import costs added another warning

Separate BLS data showed U.S. import prices fell 0.4% in July, mainly because fuel imports became cheaper. Import fuel prices dropped 7.2%, while nonfuel import prices rose 0.4%.

Even after the monthly decline, import prices were 5.9% higher than a year earlier. Fuel-import prices rose 25.2% over the year, and nonfuel import prices increased 4.5%. Prices for imported foods, feeds and beverages rose 0.9% in July.

For businesses, that combination can matter in different ways. Lower fuel costs may temporarily reduce expenses for transportation and fuel-sensitive operations, while higher prices for imported equipment, materials, food products and other goods can continue to pressure margins.

What to watch next

The Associated Press reported that gasoline prices rose later in July and in early August after falling earlier in the month. That rebound is a risk to the next round of wholesale-price data, although it is not a confirmed forecast for broader inflation.

BLS is scheduled to release its August Producer Price Index on Sept. 10, 2026, at 8:30 a.m. Eastern time. The next report will help show whether July’s monthly calm continued or whether fuel and other input costs began moving higher again.

Readers should also remember that producer-price data can be revised after the initial release. BLS notes that some figures may change in subsequent months as late reports and corrections are incorporated; the agency’s release calendar and revision procedures should be used when later versions become available.

Sources

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