U.S. producer prices unexpectedly fell in July, recording their biggest drop in nearly a year, weighed down by declining costs for services and energy products.
The Labor Department said on Thursday its producer price index for final demand slipped 0.1 percent last month, reversing June’s 0.1 percent gain. July’s drop was the largest since August 2016.
In the 12 months through July the PPI increased 1.9 percent after rising 2.0 percent in the year through June. Economists polled by Reuters had forecast the PPI ticking up 0.1 percent last month and climbing 2.2 percent from a year ago.
