Overview
On August 13, 2026, new inflation figures from the United States were released, revealing a mixed picture of the economy. The Producer Price Index (PPI) for July showed a headline inflation rate of 4.7% year-over-year (YoY), which was lower than expected, while the core PPI, excluding food and energy, came in slightly above consensus at 4.7%.
Key Data Points
- Headline PPI: 4.7% YoY, flat month-over-month (MoM).
- Core PPI: 4.7% YoY, 0.4% increase MoM.
Data Breakdown
Goods
Prices for goods fell by 0.7% MoM, primarily due to a significant 3.1% decline in energy costs and a 0.9% drop in food prices. Notably, gasoline prices dropped by 5.7%, contributing to over half of the decline in goods prices.
Services
In contrast, service prices increased by 0.2% MoM, driven by a 0.6% rise in services excluding trade, transportation, and warehousing. A notable factor was a 6.5% increase in portfolio management costs.
Construction
Construction costs surged by 2.2% MoM, helping to offset the decline in goods prices.
Labor Market Insights
Initial Jobless Claims rose to 209,000, exceeding expectations of 202,000. This figure aligns with the recent Non-Farm Payroll (NFP) data, indicating a tight labor market despite the increase in claims.
Market Reactions
The EUR/USD currency pair showed a modest increase of 0.2% on the day, while Nasdaq 100 futures remained flat. The S&P 500 index saw a slight uptick of 0.2%.