The July producer price index came in flat on the month, missing expectations for a 0.3% rise.
Core PPI (ex-food and energy) climbed 0.1%, missing expectations for a 0.2% rise.
On the year, PPI was up 2.1%, again falling shy of estimates for a 2.4% rise. Core PPI was up 1.2% on the year.
PPI measures the average change in prices from the seller’s perspective.
Investors track this number because it acts as an indicator for commodity prices in the manufacturing sector which eventually trickle down to the consumer.