❓WHAT HAPPENED: Producer Price Index (PPI) data for June showed cooler-than-expected inflation, with headline and core PPI remaining unchanged month-over-month.
👤WHO WAS INVOLVED: U.S. Bureau of Labor Statistics, economists, and market analysts monitoring inflation trends.
📍WHEN & WHERE: June data released in the United States, reflecting national economic trends.
🎯IMPACT: Inflationary pressures appear to be easing, with energy prices deflating and core PPI cooling, despite critics of President Donald J. Trump’s tariffs repeatedly predicting rises.
The latest Producer Price Index (PPI) data for June indicates that inflationary pressures remain subdued, with headline and core PPI both printing cooler than expected. Month-over-month, both measures were unchanged, falling below the anticipated 0.2 percent increase. This comes despite repeated warnings from critics of President Donald J. Trump’s tariffs that the import levies, designed to shield American producers from unfair foreign competition, would drive inflation up.
Headline PPI increased by 2.3 percent year-over-year, a decline from the revised 2.7 percent in May and below the 2.5 percent forecast. This marks the lowest annual increase since September 2024. Meanwhile, core PPI, which excludes food and energy, dropped to 2.6 percent year-over-year, its lowest level since March 2024.
For services, prices edged down 0.1 percent in June, reversing a 0.4 percent increase in May. Other notable decreases were seen in automobile retailing and airline passenger services.
Tariff critics have repeatedly insisted that President Trump’s import levies would reignite inflation, with Jerome Powell, Chairman of the Federal Reserve, using this as an excuse to delay cutting interest rates. However, the new PPI stats show once again that this “tariff-flation” does not appear to be materializing.
🚨 PPI Inflation falls to 2.3% BEATING expectations of all 50 forecasters in Bloomberg’s survey.
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