Wholesale Inflation Softens, but the Producer Price Index Remains Uncomfortably High

U.S. Federal Reserve Chair Jerome Powell speaks during a news conference in Washington, D.C., on June 15, 2022. Olivier Douliery/AFP via Getty Images

The U.S. Producer Price Index (PPI), a key measure of product prices, fell in July—for the first time in more than two years—registering the smallest 12-month gain in 2022, as energy prices fell and inflation rates moderated.

The index, which was released by the U.S. Bureau of Labor Statistics on Aug. 11, showed demand for goods dip 0.5 percent from June and 9.8 percent from a year ago.