June’s decline marks the first monthly drop in producer prices since August 2025, driven by a 6.4% fall in energy costs.
US producer prices fell 0.3% in June, the first monthly decline in 10 months, as energy prices plunged 6.4%. The drop follows a 0.6% rise in May and a 1.1% increase in April, with gasoline prices tumbling 12% to lead the decline.
Annual producer price inflation eased to 5.5% through June, down from higher prints in prior months. Core PPI, excluding food, energy, and trade services, rose 0.1%, matching analyst expectations and slowing from May’s 0.8% jump. Services prices edged up 0.2%, driven by trade margins.
The report reflects cooling input costs, particularly in energy, though food prices also slipped 0.6%. Plastic products and residential electric power were among the few categories posting gains.