WASHINGTON - s4story -- The Producer Price Index was unchanged in July, but the headline number masks continuing inflation pressures that could disproportionately affect Black-owned and other minority-owned businesses, according to an analysis by Creative Investment Research.

The U.S. Bureau of Labor Statistics reported today that the Producer Price Index for final demand was unchanged in July, following a 0.1 percent decline in June and a 0.5 percent increase in May. Despite the flat monthly reading, producer prices remain 4.7 percent higher than a year ago.

More importantly for small and minority-owned firms, prices for final demand construction surged 2.2 percent in July, while prices excluding food, energy and trade services increased 0.4 percent for the month and 4.7 percent over the past year.

"The zero percent headline looks encouraging, but it does not mean that inflation has disappeared," said William Michael Cunningham, economist and CEO of Creative Investment Research. "For Black and minority-owned firms operating with limited working capital and less pricing power, a 4.7 percent annual increase in producer prices remains a significant economic burden."

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Construction Firms Face Particular Pressure

The 2.2 percent monthly increase in construction prices is especially concerning for minority contractors and subcontractors.

Energy Provides Relief, but Trucking Remains Vulnerable

There was some good news in the July report. Final demand energy prices declined 3.1 percent, gasoline prices fell 5.7 percent, and truck transportation of freight prices declined 1.8 percent.

Inflation Remains in the Production Pipeline

Prices for processed goods for intermediate demand were still 9.9 percent higher than a year earlier, while prices for services for intermediate demand were 5.1 percent higher.

Inflation Is Also a Capital-Access Problem

The impact of inflation is not distributed equally across American businesses.

Large corporations generally have greater access to credit, stronger negotiating power with suppliers, larger cash reserves, and greater ability to hedge costs or pass price increases to customers.

Black and minority-owned firms frequently operate with smaller financial cushions and more limited access to affordable capital.

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As a result, rising producer prices can quickly become a working-capital problem.

"If input costs increase by $50,000, a business may need another $50,000 in financing simply to maintain the same level of production," Cunningham said. "For businesses that already face barriers to credit, inflation magnifies existing capital disparities."

Relief, Not Resolution

Creative Investment Research cautions policymakers and business leaders against interpreting the flat July PPI as a signal that inflation pressures on small businesses have ended.

For the full analysis, see: https://www.impactinvesting.online/2026/08/july-ppi-is-flat-but-black-and-minority.html