US: Producer Price Index Holds Steady in June

Official data released Wednesday showed that the US Producer Price Index (PPI) saw no significant change in June, reflecting mixed signals regarding the impact of tariffs on inflation going forward.

According to seasonally adjusted figures from the Bureau of Labor Statistics, the PPI was unchanged in June, while economists surveyed by Dow Jones had expected a 0.2% increase.

The core PPI, which excludes food and energy, was also steady, missing expectations for a 0.2% increase.

This data, along with Tuesday’s Consumer Price Index (CPI), reinforces the view that US President Donald Trump’s tariffs are having only a limited impact on the US economy and the prices of goods and services so far.

While the overall wholesale index figures held steady, final demand goods prices rose 0.3%, offset by a slight 0.1% decline in service prices. Communications equipment, a tariff-sensitive category, increased by 0.8%. Commodity prices (excluding food and energy) also rose by 0.3%.

Meanwhile, the May reading for the Producer Price Index (PPI) was revised from a 0.1% increase to 0.3%, the largest monthly increase in commodity prices since February, according to the Bureau of Statistics.

On an annual basis, the overall PPI rose by 2.3%, compared to 2.7% in May, the lowest level since September 2024. The core PPI rose by 2.6% annually, also its lowest level since July 2024.