US Producer Prices See Largest Drop in 14 Months in June, Core PPI Moderates

The US Producer Price Index (PPI) for June 2026 fell by 0.3% month-over-month, marking the largest decline since August 2025 and defying expectations for a flat reading. This was primarily driven by a significant 6.4% drop in energy prices, with gasoline prices tumbling 12%. The core PPI, excluding food, energy, and trade services, edged up 0.1% over the month. Annually, the headline PPI increased 5.5% and the core PPI advanced 5.1%. This moderation in producer inflation aligns with a cooler Consumer Price Index report released earlier in the week, potentially easing concerns about the Federal Reserve's interest rate policy.