US July PPI rose 4.7% year-over-year, falling below market expectations and slowing from June's 5.5%, while Core PPI declined to 4.2%. Combined with softening CPI data, the reports indicate cooling production-side and consumer inflationary pressures, largely driven by dropping energy and food prices. This lower than expected inflation data relieved market concerns regarding reaccelerating inflation and reduced near term Fed rate hike pressures.