Normally I don’t pay too much attention to the producer price index, but because the steep decline in producer prices has been such a boon to businesses, and a big tailwind for the economy as a whole, whether that continues or not is important.

And in July, the deflationary pulse generally continued. While final demand producer prices for goods edged up by 0.1%, intermediate stage prices for goods declined -0.7% and raw commodity prices declined -0.3%:

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The YoY comparisons improved because last July’s big initial decline (led by energy prices) rotated out of the comparisons:

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Still, end-state producer prices are down -2.5% YoY, intermediate stage by -7.8%, and raw commodities by -7.0%.

Bottom line: the tailwind is not as strong as before, but it is still in place.

More By This Author:

July CPI: Almost Everything Except Fictitious Shelter Costs Are Getting Close To The Fed’s Comfort Range
Initial Jobless Claims: A Little Soft, But Continued Expansion Signaled
What To Look For In Tomorrow’s CPI And Friday’s PPI