{"id":6601,"date":"2025-07-16T14:58:06","date_gmt":"2025-07-16T14:58:06","guid":{"rendered":"https:\/\/otetmarkets.com\/blog\/?p=6601"},"modified":"2025-07-16T14:58:06","modified_gmt":"2025-07-16T14:58:06","slug":"us-producer-inflation-june-2025","status":"publish","type":"post","link":"https:\/\/otetmarkets.com\/blog\/news\/us-producer-inflation-june-2025\/","title":{"rendered":"US Producer Inflation Flatlines in June 2025: Core PPI and Annual Rate Fall Below Forecasts"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaways\"><strong>\ud83d\udccc Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PPI unchanged<\/strong> in June vs. +0.3% in May<\/li>\n\n\n\n<li><strong>Service prices fell 0.1%<\/strong>, led by sharp drop in travel accommodation<\/li>\n\n\n\n<li><strong>Goods prices rose 0.3%<\/strong>, mainly due to communication equipment<\/li>\n\n\n\n<li><strong>Annual PPI fell to 2.3%<\/strong>, lowest since September 2024<\/li>\n\n\n\n<li><strong>Core PPI flat<\/strong> vs. expected +0.2%; <strong>annual core rate dropped to 2.6%<\/strong><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-video\">\n  <a href=\"https:\/\/otetmarkets.com\/prblog\" target=\"_blank\">\n    <video height=\"500\" style=\"aspect-ratio: 1312 \/ 500;\" width=\"1312\" autoplay loop muted playsinline>\n      <source src=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/04\/Otet-Banner-en-2.mp4\" type=\"video\/mp4\">\n      Your browser does not support the video tag.\n    <\/video>\n  <\/a>\n<\/figure>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-u-s-producer-prices-show-no-growth-in-june\"><br><strong>U.S. Producer Prices Show No Growth in June<\/strong><\/h2>\n\n\n\n<p>The <strong>U.S. Producer Price Index (PPI)<\/strong> remained <strong>flat in June 2025<\/strong> compared to May, according to the latest Labor Department data. This <strong>surprised analysts<\/strong>, who had expected a 0.2% increase, and signals <strong>easing inflationary pressure<\/strong> at the wholesale level.<\/p>\n\n\n\n<p>The report comes on the heels of the consumer inflation data and adds weight to the case for <strong>potential rate cuts by the Federal Reserve<\/strong> later in the year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-services-prices-dip-travel-takes-a-hit\"><strong>Services Prices Dip, Travel Takes a Hit<\/strong><\/h3>\n\n\n\n<p>Prices for <strong>services declined 0.1%<\/strong>, after a <strong>0.4% increase in May<\/strong>. This was mainly driven by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>4.1% plunge in traveler accommodation services<\/strong><\/li>\n\n\n\n<li>Declines in <strong>auto parts retailing<\/strong>, <strong>airline passenger services<\/strong>, and <strong>deposit services<\/strong><\/li>\n\n\n\n<li>Lower prices for <strong>food and alcohol wholesaling<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This drop in services suggests <strong>slowing demand in discretionary sectors<\/strong>, possibly tied to cautious consumer spending and trade uncertainty.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"482\" src=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-47-1024x482.webp\" alt=\"US producer inflation June 2025 PPI flat and core inflation easing\" class=\"wp-image-6604\" srcset=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-47-1024x482.webp 1024w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-47-300x141.webp 300w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-47-768x361.webp 768w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-47.webp 1312w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-goods-prices-rebound\"><br><strong>Goods Prices Rebound<\/strong><\/h3>\n\n\n\n<p>Goods prices rose <strong>0.3%<\/strong>, the <strong>biggest monthly gain since February<\/strong>, led by:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Item Category<\/th><th>Monthly Change<\/th><\/tr><\/thead><tbody><tr><td>Communication &amp; related equipment<\/td><td>+0.8%<\/td><\/tr><tr><td>Gasoline<\/td><td>\u2191<\/td><\/tr><tr><td>Residential electric power<\/td><td>\u2191<\/td><\/tr><tr><td>Poultry, meats, and tree nuts<\/td><td>\u2191<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>This bounce indicates <strong>ongoing volatility in energy and food-related sectors<\/strong>, but the increase was <strong>not strong enough to push the overall PPI higher<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-annual-ppi-and-core-inflation-fall-sharply\"><br><strong>\ud83d\udcc9 Annual PPI and Core Inflation Fall Sharply<\/strong><\/h2>\n\n\n\n<p>The <strong>annual PPI dropped to 2.3%<\/strong>, its <strong>lowest level since September 2024<\/strong>, down from a revised <strong>2.7% in May<\/strong> and well below forecasts of <strong>2.5%<\/strong>.<\/p>\n\n\n\n<p>The <strong>core PPI<\/strong>\u2014which excludes food, energy, and trade services\u2014was <strong>unchanged month-over-month<\/strong>, against expectations for a <strong>0.2% increase<\/strong>.<\/p>\n\n\n\n<p>The <strong>year-over-year core PPI fell to 2.6%<\/strong>, down from <strong>3.2% in May<\/strong>, and <strong>below the forecast of 2.7%<\/strong>, confirming <strong>waning price pressure in underlying business inputs<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-this-means-for-the-federal-reserve\"><br><strong>What This Means for the Federal Reserve<\/strong><\/h2>\n\n\n\n<p>The weaker-than-expected PPI report <strong>supports the Fed\u2019s cautious stance<\/strong> and may boost expectations for a <strong>rate cut in the fall<\/strong>\u2014possibly as soon as the <strong>September meeting<\/strong>.<\/p>\n\n\n\n<p>Markets will now closely watch:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>July CPI data (due August 13)<\/li>\n\n\n\n<li>FOMC statements and speeches<\/li>\n\n\n\n<li>Global macro trends and trade developments<\/li>\n<\/ul>\n\n\n\n<p>If inflation continues to ease, the <strong>Fed may have room to lower interest rates<\/strong> to support slowing investment and labor markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\"><br><strong>\ud83d\udce2 Final Thoughts<\/strong><\/h2>\n\n\n\n<p>The flat PPI and cooling core inflation <strong>signal relief for businesses<\/strong> facing high input costs. While goods prices remain volatile, the overall trend points to <strong>moderating inflation<\/strong>, offering some hope for both manufacturers and consumers.<\/p>\n\n\n\n<p><strong>\ud83d\udcac <em>What are your thoughts on wholesale inflation trends? Are you seeing cost relief in your business? Share in the comments!<\/em><\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/tradingeconomics.com\/united-states\/producer-price-inflation-mom\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udccc Key Takeaways U.S. Producer Prices Show No Growth in June The U.S. Producer Price Index (PPI) remained flat in June 2025 compared to May, according to the latest Labor Department data. This surprised analysts, who had expected a 0.2% increase, and signals easing inflationary pressure at the wholesale level. The report comes on the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,2],"tags":[37],"class_list":["post-6601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-economy-news","category-news","tag-financialnews"],"_links":{"self":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/6601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=6601"}],"version-history":[{"count":1,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/6601\/revisions"}],"predecessor-version":[{"id":6605,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/6601\/revisions\/6605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media\/6603"}],"wp:attachment":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=6601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=6601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=6601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}