The Labor Department said the U.S. producer price index fell by 0.5% in July. That is down from a 1.0% jump in June.
Economists polled by The Wall Street Journal had predicted a 0.2% advance.
The main producer price index, which excludes volatile food and energy prices, rose 0.2% in July, down from a 0.3% gain in the previous month.
The PPI was up 9.8% in July, down from 11.3% in the previous month. Core prices are up 5.8% from a year ago, down from 6.4% in June. The cost of goods fell 1.8 in July, the largest decline since the 2020 pandemic. The cost of services went up 0.1% last month, down from 0.3% in June. In July, energy prices fell 9%, down from a 9.4% gain in the previous month. The big picture: Economists don't think there will be too much moderation in producer prices until later in the fall. Market reaction: DJIA, the US stock market, was set to open higher Thursday after strong gains in the previous trading session.