Inflation Cools More Than Expected! US July PPI Annual Gain Narrows to 4.7% on Falling Energy Costs

US July PPI was flat month-over-month, with the annual rate falling to 4.7%. Core PPI eased to 4.2% year-over-year, driven by lower energy prices and a slowdown in services price increases. The divergence between CPI and PPI widened, putting pressure on corporate profit margins. Market expectations for Fed rate hikes remain unchanged, with limited urgency for near-term policy adjustments, while future inflation trends still hinge on energy price movements.