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The Producer Price Index (PPI) for finished goods rose at an annualized rate of 2.5 percent in July, following a 4.3 percent decline in June. Over the past year, producer prices are up 7.2 percent. Energy prices fell 7.2 percent in July after a near 30 percent drop in June, while producer prices for finished consumer foods rose 7.1 percent during the month. Excluding food and energy items, (“core”) producer prices jumped up 5.5 percent in July, though the release noted that an outsized jump in tobacco prices accounted for roughly 25 percent of the increase. Over the past three months, the annualized growth rate in the core PPI is 3.9 percent, modestly above its 12-month growth rate of 2.5 percent. Further back on the production line, pricing pressure was relatively subdued for these series, as core intermediate goods rose just 2.5 percent, and core crude goods—which are up 27 percent over the past year—rose 8.2 percent in July.