US PPI Drops Unexpectedly, Producer Inflation Pressures Begin to Ease
US producer prices fell unexpectedly in June 2026. The Producer Price Index (PPI) weakened 0.3% on a monthly basis, after rising 0.6% in May, based on a downward revision, and lower than market expectations that indicated no change.
This decline was the first since August 2025 and the largest decline since April of last year. The main pressure came from goods prices, which fell 1.4%, the largest decline since July 2022.
Gasoline prices were the main factor in the decline, having plummeted 12%. This decline indicates that energy price pressures are beginning to ease, despite market concerns about the impact of the Middle East conflict on global energy supplies.
Meanwhile, the core PPI, or core producer prices excluding food and energy, rose 0.2% on a monthly basis in June. This figure was lower than market expectations of 0.4% but higher than the previous month's downwardly revised 0.1% increase.
This data shows that energy supply shortages from the Middle East have not yet fully impacted core wholesale prices, as they had previously weighed on the market. Prices for final goods excluding food and energy rose 0.2%, the smallest increase since November 2025, while prices for final services rebounded 0.2% after falling 0.1% in May.
In terms of market impact, the lower-than-expected PPI data could dampen expectations for a Fed rate hike. This could potentially put downward pressure on the US dollar and Treasury yields, while also providing positive room for gold and riskier assets. However, the market still needs to monitor oil prices and the Middle East conflict, as new energy could still revive inflation risks. (asd)
Source: Newsmaker.id
