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The PPI in the U.S. rose 2.3% year-over-year in June, falling short of Wall Street’s 2.7% figure from the month before and sliding under expectations. That’s a soft print for wholesale prices, especially when economists had penciled in a monthly gain of 0.2%. Instead, the index just sat there flat, according to the Bureau of Labor Statistics (BLS). Same story for core PPI, which strips out food and energy. Also expected to rise by 0.2%, but it didn’t move either. Not up, not down. Zero. This adds another layer to the inflation puzzle, especially right after the consumer price index (CPI) data hit on Tuesday. PPI update: Goods prices rise while services fall Even though the top-line PPI stayed flat, not every category was still. Final demand goods rose 0.3%, mainly thanks to communication equipment, which are most sensitive to trade restrictions and tariffs, surging 0.8%. But that gain got canceled out by a 0.1% drop in services, and snd services make up a big chunk of the U.S. economy. At the same time, May’s original PPI print got a facelift. The BLS revised it upward, from 0.1% to 0.3%. That might sound small, but it’s actually the biggest jump in wholesale goods prices since February. Within the core goods section again, this means excluding food and energy, there was another 0.3% increase. So even if the headline number didn’t move in June, certain parts of the economy clearly did. Zooming out a bit, on a 12-month basis, we see the headline PPI came in at 2.3%, down from 2.7% in May. That’s still above the Federal Reserve’s 2% target, but it’s easing. Compare that with the CPI data from Tuesday, where consumer prices rose 0.3% month-over-month, and the annual headline inflation rate landed at 2.7%. Core CPI, which cuts out the noise…

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Filed under: News - @ July 16, 2025 2:25 pm