Producer prices plunge in July on lower energy costs
Producer prices plummeted 0.9 percent in July, the U.S. Labor Department announced Tuesday, as energy costs retreated and slack demand pressured prices. The bottom line regarding the producer price index? Inflation is non-existent at the wholesale level. In fact, deflation remains a real risk in the quarters ahead.
Economists surveyed by Bloomberg News had expected producer prices to decrease 0.3 percent in July. Producer prices rose 1.8 percent in June and 0.2 in May.