The Labor Department announced the U.S. producer-price index (PPI) fell 0.1 percent m-o-m in July after a 0.1 percent m-o-m gain in June. For the 12 months through June, the PPI rose 1.9 percent compared to a 2.0 percent increase recorded in the prior month.

According to the report, over 80 percent of the June decline in PPI is attributable to lower prices for final demand services, which dropped 0.2 percent. Meanwhile, prices for final demand goods edged down 0.1 percent.

Economists had forecast the headline PPI would rise 0.1 m-o-m in last month and 2.2 percent over the past 12 months.

Excluding volatile prices for food and energy, the indicator fell 0.1 percent m-o-m, but rose 1.8 percent over 12 months, while economists forecast advances of 0.2 percent and 2.1 percent respectively.