The U.S. Labor Department reported Wednesday that its producer price index, which captures inflation before it reaches consumers, dropped in July as upward price pressure eased on gasoline and food, according to a report in the Associated Press.
Also known as wholesale inflation, the measure rose 4.7% in July from a year ago, which while elevated is still down from a much larger 5.5% increase in June.
On a month-to-month basis, wholesale prices did not change from June to July.
The reasons for the slowdown include moderating gasoline prices, which came down in July from their previous Iran War increases.
The figures aligned with the previous day’s consumer price inflation report, which also indicated a modest inflationary slowdown.
After falling in July, energy prices rose again in early August, which could blunt any momentum in keeping inflation under control when the August figures are released.
