Forex▲ Bullish
US PPI Falls 0.3% in June, Energy Prices Lead Biggest Goods Drop Since 2022
US PPI fell 0.3% in June, the biggest goods decline since 2022, as energy prices dropped 6.4%. The data strengthens the disinflation case ahead of the Fed's next meeting.
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US producer prices unexpectedly declined in June, reinforcing the disinflationary message from Tuesday's softer consumer inflation report. The Producer Price Index fell 0.3% month over month, against expectations for a 0.2% increase. Annual producer inflation slowed to 5.5% from a revised 6.0%.
The weakness was concentrated in goods prices, which dropped 1.4% – the largest monthly decline since July 2022. Energy prices plunged 6.4%, led by a 12.0% fall in gasoline prices that accounted for nearly two-thirds of the decline in final demand goods. Food prices slipped 0.6%. Core goods excluding food and energy rose 0.2%, while final demand services increased 0.2%, reflecting firmer retail margins and selected business services.