Producer Prices Unchanged in July 2026-What does the PPI indicate for the Economy?

The Producer Price Index (PPI) helps us understand the prices producers can receive for the products they sell. The metric covers domestic production across major economic sectors. Higher producer prices can eventually be passed on to consumers, creating inflationary pressure. A lower PPI generally indicates less inflationary pressure and can minimize the likelihood of additional interest rate increases.

A lower PPI can contribute to increased business profits, lower inflation, and potentially greater innovation through investment. Lower input costs and higher profit generally attract new investment. New investment and costs are interwoven into the economic and business environment. (Keep in mind the concept we are exploring in this blog regarding transaction costs and how the right environment can reduce the costs associated with innovation and inputs, making businesses more attractive for investment. In Theory...meaning take or leave it....either is ok. Businesses can cluster in different ways, either vertically, with a focus on specific types of businesses i.e., an industry-focused cluster within a larger city, and/or more organically, through clusters of diverse but co-complementary businesses that may be particularly beneficial for economic resilience of smaller communities.)

You can read about PPI and its impact on PPI and how it works. Producer Price Index (PPI) Explained: Comprehensive Guide & Analysis

Over the past few years.

Producer Prices Unchanged in July 2026, While Annual Wholesale Inflation Remains Elevated

• The Producer Price Index (PPI) for final demand was unchanged in July 2026 after declining 0.1% in June and increasing 0.5% in May.
• Despite no monthly increase, final-demand producer prices were 4.7% higher than a year earlier, indicating that inflationary pressures remain elevated at the producer level.

• 

  Source

  Final-demand services increased 0.2% in July, while construction prices rose 2.2%. These increases offset a 0.7% decline in final-demand goods.
• Energy prices provided significant downward pressure, with final-demand energy prices falling 3.1% and gasoline prices declining 5.7%. Food prices also decreased 0.9%.
• The broader measure excluding foods, energy, and trade services increased 0.4% in July and was up 4.7% over the previous 12 months, suggesting that underlying producer-price pressures remain persistent.

U.S. Bureau of Labor Statistics. (2026, August 13). Producer price indexes—July 2026. U.S. Department of Labor. https://www.bls.gov/news.release/ppi.nr0.htm

CPI Increases .1% Showing Signs of Inflation Moderation

The Consumer Price Index, or CPI, moderated a little in July, meaning the pace of price increases slowed. The CPI increased 0.1% in July after declining 0.4% in June, while prices were up 3.4% over the previous 12 months.

Although inflation is beginning to ease, prices remain elevated, and many people are still struggling to pay their bills and living paycheck to paycheck. It is not easy—I have been there, done that. Food prices increased 3.0% over the past year, while shelter increased 3.2%, so hopefully we will continue to see these areas moderate as well.

Overall, the latest report provides some positive signs, but consumers are still feeling the effects of higher prices. I have included the article below, along with the original source and a summary of the information. 

I like this review article, 

Consumer prices rose 0.1% in July, as expected, putting the annual rate at 3.4%

Consumer Price Index Shows Moderate Inflation in July 2026

• The Consumer Price Index (CPI) for All Urban Consumers increased 0.1% in July 2026 after declining 0.4% in June. Over the previous 12 months, consumer prices increased 3.4%.
• Shelter prices increased 0.1% in July and accounted for approximately two-thirds of the overall monthly CPI increase. Food prices also rose 0.1%.
• Energy prices provided some relief, declining 1.5% in July. However, energy prices were still 14.7% higher than they were one year earlier.
• Core inflation, measured by prices excluding food and energy, increased 0.2% in July and was up 2.5% over the previous 12 months, down from 2.6% in June.
• Overall, the July report suggests that inflation continued to moderate compared with June, although prices remained elevated in several areas. Food increased 3.0% and shelter increased 3.2% over the year, demonstrating that consumers continued to face meaningful increases in everyday living costs.

U.S. Bureau of Labor Statistics. (2026, August 12). Consumer price index—July 2026. U.S. Department of Labor. https://www.bls.gov/news.release/cpi.nr0.htm

Purpose of Institutions-Nationalism and Patriotism-The Allegory of the Clan

 Imagine, for a moment, that you discovered serious wrongdoing, but the wrongdoing was shielded and protected. The doors to reporting were blocked, and those who attempted to report it faced swift retaliation. Coordinated sustained harm over a number of years. It did not matter how many people were aware of the conduct or how many victims were affected because decision-makers operated according to particular ideologies and perceptions about the purpose of the institution. The behavior was clearly alleged to be illegal, unconstitutional, and rooted in extreme racial or religious bias. Yet, rather than correcting the misconduct, greater effort seemed to be devoted to protecting those involved from accountability. This raises a troubling question: Is the objective truly justice, or is it the preservation of ideology and clan interests?

This is where we use a hypothethetical, philosophical thought experiment to explore. Take with a grain of salt and come to any conclusion you so desire. 

In the Allegory of the Clan, the coordination was significant. A closed clan system sought to teach victims the lessons of how the system "really works," rather than the ideals that had been passed down from generation to generation. This creates a philosophical divergence. Some may view Law and Order as a mechanism for promoting and protecting their particular values, while others may view Law and Order as a means of preserving broader societal values, fairness, and justice. From this perspective, nationalism and patriotism become important concepts to examine.

Within the Allegory of the Clan, there were clear signs of nationalism and forced adherence to alleged misconduct. Perceived surface cultural violations brutally punished (Remember that culture if fluid with each generation but sharing a line because it transfers cross generational values. As an example for discussion Philosophical-Logical Systems Remember the whole blog is for philosophical thought so if it makes you reach then it has done its job.). The group was aware of information manipulation, isolating elderly for financial gain, false accusations, placing children at risk (undermining both parents), and the potential for violence against victims. The perpetrators had no boundaries and the courts supported that as long as it was against minority members. Good officials expected to fall in line and intellectuals openly silenced through threats. 

Hightenting the problem, some members had allegedly engaged in similar behaviors for years not only to those victims but others. The troubling question is whether the institution's purpose became protecting itself rather than serving the greater good and supporting justice. From a highly nationalistic perspective, victims can become disposable, their experiences dismissed through convenient narratives, and meaningful avenues for recourse effectively eliminated. The laws are used to harm, narratives are used to justify, but the behaviors are clearly plays of technicalities to protect serious social contract violations.

This can create the equivalent of a second-class citizen: someone with fewer practical rights, limited access to justice, and little institutional protection. Narratives about such individuals can be shaped by religious prejudice, racism, nationalism, or other forms of identity-based hostility. Our principles do not allow us to judge others by these metrics. Those making the decisions may sincerely believe their choices are justified because their perception of reality is filtered through a distorted understanding of identity and belonging. History proves them wrong here and in other places. 

The deeper irony is that those claiming to defend the institution may themselves fail to embody the values they claim to protect. Identity based justifications.Their own ancestry, religious traditions, or connection to the sacrifices of previous generations may be less relevant than the identity they have constructed for themselves. Yet they position themselves as the legitimate guardians of society, institutions, or the culture. Under their own logic others might have more rights then themselves if they supercede them on these self-benefiting metrics (These are distorted metrics while merit is a purer form). They may have been here longer, reflect the religious values better than, and are connected to the early formation of a nation much more then the nationalists (or not. Ultimately it doesn't matter except for in group management and manipulation.). 

(All behavior is goal directed. The mirror of behavior indicates that they were making decisions rooted in identity, social networks, and normalized corruption. A pattern easily repeated but learned in other places.)

(illustrative only)
See analysis below.

That is the central tension in the Allegory of the Clan: when loyalty to the clan, institution, or ideology becomes more important than the principles of justice, Law and Order can cease to function as a protection for society and instead become a mechanism for protecting the powerful or in-groups. Patriotism and nationalism are interchanged, and institutional loyalty can become a justification for abandoning the very values the institution was created to preserve. Remember this that nationalism is identity focused and patriotism is value focused. Both are ways to run a system but only one will help you reach the highest levels. Feel free to adjust the elements and come to the conclusion you desire. 

Let us say that the behaviors continue because they silenced victims, played games with their rights and victim dumped. Think if some of the motivations when principles are replaced through identity.

What is Nationalism?

*The Allegory of the Clan is for illustrative purposes as a philosphical thought experiment. 

This is an explanation of symbolism. Understanding symbolism helps us tape into the deeper meaning of words and concepts.

AI explained the picture created this way......

That is a powerful political allegory. The imagery neatly captures the subtle boundary—and common root—between two concepts that are constantly debated in political philosophy.

Here is a breakdown of what makes this scene and its central thesis so compelling:

Unpacking the Imagery

• The Eagle-Headed Cane & Black Suit: The eagle represents state authority, sovereignty, and historical power. The black suit grounds the figure in solemnity and institutional weight—he speaks not just as an individual, but as a representative of political tradition.

• The "Pick a Hand" Gesture: This is the core motif. Like a magician asking an audience to pick a hand, the speaker presents Patriotism in one hand and Nationalism in the other as if they are fundamental opposites. But both hands belong to the same body, guided by the same intent.

• The Captivated Audience: Highlights how deeply invested people are in choosing the "right" label, seeking to embrace civic pride while rejecting aggressive chauvinism.

Two Lenses of the Same Phenomenon

Philosophers and political theorists often try to draw a sharp line between the two concepts:

• Patriotism is defined as affection for a way of life and a place, fundamentally defensive in nature.

• Nationalism is defined as the desire for power and self-assertion, inherently competitive and aggressive.

Why They Are "Two Lenses"

The premise in your scene argues that despite these definitions, both arise from the exact same psychological and social impulse: in-group identity tied to the modern nation-state.

Dimension	Viewed through the "Patriotism" Lens	Viewed through the "Nationalism" Lens
Core Motivation	Love of one's culture, land, and shared civic values.	Devotion to the sovereign strength and dominance of the nation.
Boundary	"We value our shared community."	"We define ourselves against the outsider."
Expression	Civic participation, honoring heritage, pride in institutions.	Border emphasis, priority of national interest above global ties.
Underlying Mechanism	Human need for collective belonging and shared history.	Human need for collective belonging and shared history.

Social Innovation Theory-Entrepreneurship and Wealth Distribution

 Let’s talk about social innovation theory. We often think of economics and social issues as being separate, but in reality, they are interconnected and influenced by many of the same core behaviors.

For example, let’s say you want to achieve a broader distribution of wealth and bring communities back as the center of social and business life. Downtowns were created in many cases to serve that purpose. By fostering small businesses, you can distribute wealth more broadly across a community, but you can also increase innovation, investment, and economic activity.

Developing an entrepreneurial community relies, in part, on the social side of development—how people share ideas, connect those ideas, collaborate, and work together to build new businesses. It also involves creating access to financing and other resources that allow those businesses to grow. A type of broad based capitalism where wealth circulates more freely at a more community level.

So, if the goal is to reduce the concentration of wealth, one approach is to foster small businesses and place them in environments where they can grow and succeed socially as well as economically. When people are connected, ideas are shared, businesses develop, and communities become stronger, those social relationships can contribute directly to economic development.

Anyway, take a look at the article below. It’s an interesting discussion of how new ideas and approaches to solving problems can develop, spread, and lead to innovation.

Social Innovation Theory: Creating Sustainable Solutions to Complex Social Problems

• Social innovation focuses on developing new products, processes, or approaches that address persistent social problems while creating meaningful value for communities.
• Effective social innovation depends on collaboration among governments, nonprofits, businesses, social enterprises, and community members rather than relying on one organization alone.
• The article highlights systems change and collective impact as important models because they encourage stakeholders to work together to address underlying social structures rather than simply treating individual symptoms.
• Community involvement, diverse perspectives, data-driven decision-making, sustainability, and strategic partnerships can improve the effectiveness and legitimacy of social innovation initiatives.
• A major challenge is measuring and scaling social innovation. Successful initiatives must demonstrate measurable social value while adapting their solutions to different communities and institutional environments.

Impact Dots. (n.d.). The social innovation theory: Understanding fundamentals. https://impactdots.com/blog/the-social-innovation-theory-understanding-fundamentals/

Small Business Owners Optimistic According to NFIB Survey

 If you're a small business owner, this report probably puts a smile on your face. It looks like optimism is on the rise. In another report on the blog, we saw that medium-sized businesses are also becoming more optimistic globally, so this seems to fall in line with that broader trend.

We continue to talk about human capital on this blog, and you'll see that reflected in this report as well. According to the survey, human capital remains an issue that businesses can benefit from. Technology gives us an opportunity to help address some of those challenges, but it really depends on how we utilize that technology and what we choose to focus on.

Overall, though, this is good news. Rising optimism among small and medium-sized businesses is a positive sign and is in part associated with investment. If we find small business investment rising in the near future. If not then we can continue to explore why that hasn't happened. Time will answer all questions. 

New NFIB Survey: Small Business Optimism Continues to Rise

• The NFIB Small Business Optimism Index increased 2.4 points in July to 99.8, moving above its 52-year historical average of 98.0 and reaching its highest level since August 2025.
• Hiring intentions improved significantly, with 20% of small business owners planning to create new jobs over the next three months. This was a 9-point increase from June and the strongest reading since October 2022.
• Labor remains a major challenge. Twenty-seven percent of owners identified labor quality or availability as their most important problem, while 36% reported job openings they could not fill.
• Businesses showed greater willingness to invest, with 25% planning capital expenditures during the next six months. This was a 5-point increase from June and the highest level since December 2024.
• Despite improving optimism, uncertainty remains elevated. The Uncertainty Index increased to 91, while concerns about inflation declined, with only 14% of owners identifying inflation as their most important problem.

National Federation of Independent Business. (2026, August 11). New NFIB survey: Small business optimism continues to rise. NFIB. https://www.nfib.com/news/press-release/new-nfib-survey-small-business-optimism-continues-to-rise-11/

Sunset in the Harbor (Photo)

 You may be interested in this photo I took the other day. Thought it was nice so I added it to my gallery.

Prints can be up to
post size for $50.
Glossy or matte.
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According to Survey Global Mid-Size Businesses Feel Confident August 10th, 2026

Understanding businesses of different sizes gives us valuable insight into how they view their markets and how they are performing. A healthy economy has a diverse mix of businesses across different industries and sizes. When these businesses interact and complement one another, they can create significant economic value.

(Illustrative Only)

This guy thinks of how
to take his fishing poles
and export them. 
Considering I have 
some extra bamboo 
around from another project
I can probably see
if I can make a fishing pole
out of it. I would 
have to buy something
that would allow
me to break the pole 
down. Another
future project.
Just after the next
project. I'm not
thinking of exporting
but just seeing if I
can make one. 
You never know
what the future brings. 
😀

A recent global survey focused primarily on midsize businesses and found that they remain relatively positive about their prospects. For example, 61% of the companies surveyed expect to achieve growth, and 83% believe they can accomplish their business goals. Many are also looking to expand internationally, which is an interesting indicator of their confidence and strategic direction.

The important thing is to pay attention when studies like this are released. Read them and begin putting the pieces together. Over time, you start to see market patterns (behaviors): this is what is happening with midsize businesses, this is what is happening with larger businesses, and this is how different businesses are responding to or interacting with issues in the market.

As you accumulate this information, you can begin to develop a clearer understanding of how different parts of the economy function, how businesses respond to changing conditions, and how they influence one another. In many ways, you are building a mental model of the market and how its different pieces fit together.

Businesses Enter the Era of Measured Growth

• Global businesses remain ambitious, but uncertainty is causing many leaders to favor sustainable and achievable growth rather than aggressive, high-risk expansion.
• 61% of surveyed leaders expect revenue growth of 5–20% over the next 12 months, while 54% describe their strategies as ambitious.
• Business leaders are generally confident about their plans, with 83% believing they can achieve their growth ambitions despite economic and geopolitical uncertainty.
• Team capability is identified as the leading internal driver of growth, emphasizing the importance of employee skills, human capital, and organizational capacity.
• The findings suggest a shift toward disciplined strategic decision-making, with companies continuing to pursue international expansion while carefully managing risk and uncertainty.

Saffery. (2026, August 10). New global survey reveals businesses have entered the era of “measured growth.” https://www.saffery.com/insights/news/new-global-survey-reveals-businesses-have-entered-the-era-of-measured-growth/