US Producer Prices Record Surprise Decline

2026-07-15 12:34 By Joana Taborda 1 min. read

Producer prices in the US declined 0.3% mom in June 2026, following a downwardly revised 0.6% rise in May and below forecasts of a flat reading.

It is the first decrease in PPI since August 2025 and the largest since April last year.

Prices of goods went down 1.4%, the most since July 2022, led by a 12% slump in gasoline.

Cost for diesel fuel, jet fuel, fresh vegetables (except potatoes), crude petroleum, and thermoplastic resins and materials also fell.

Meanwhile, prices of services rose 0.2%, rebounding from a 0.1% decline in May, with half of the gain coming from a 13% surge in margins for fuels and lubricants retailing.

The indexes for securities brokerage, dealing, and investment advice; furniture retailing; apparel, jewelry, footwear retailing; also rose.

Year-on-year, producer prices increased 5.5%, well below 6% in May and forecasts of 6.2%.

Meanwhile, core producer prices rose 0.2&%, below forecasts of 0.4% and the annual core rate came in at 4.7%, below expectations of 5.2%.



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US Producer Prices Record Surprise Decline
Producer prices in the US declined 0.3% mom in June 2026, following a downwardly revised 0.6% rise in May and below forecasts of a flat reading. It is the first decrease in PPI since August 2025 and the largest since April last year. Prices of goods went down 1.4%, the most since July 2022, led by a 12% slump in gasoline. Cost for diesel fuel, jet fuel, fresh vegetables (except potatoes), crude petroleum, and thermoplastic resins and materials also fell. Meanwhile, prices of services rose 0.2%, rebounding from a 0.1% decline in May, with half of the gain coming from a 13% surge in margins for fuels and lubricants retailing. The indexes for securities brokerage, dealing, and investment advice; furniture retailing; apparel, jewelry, footwear retailing; also rose. Year-on-year, producer prices increased 5.5%, well below 6% in May and forecasts of 6.2%. Meanwhile, core producer prices rose 0.2&%, below forecasts of 0.4% and the annual core rate came in at 4.7%, below expectations of 5.2%.
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US Headline Producer Inflation Expected to Ease in June
US producer prices are expected to have remained unchanged in June 2026, marking the weakest monthly reading in ten months, after increasing by 1.1% in each of the previous two months. The moderation was likely driven by lower energy prices following the ceasefire agreement between the US and Iran. Excluding the more volatile food and energy components, core producer prices are forecast to rise by 0.4% in June, matching May's increase. On an annual basis, headline producer inflation is expected to ease to 6.2% from 6.5%, marking its first slowdown in eight months after reaching its highest level since November 2022. By contrast, annual core producer inflation is projected to accelerate to 5.2% from 4.9%, its highest reading since December 2022.
2026-07-15
US Producer Inflation Accelerates but Core PPI Below Expectations
Producer prices for final demand in the US increased 1.1% mom in May 2026, the same as a downwardly revised 1.1% rise in April, and once again above forecasts of 0.7%. Prices of goods soared 2.8%, following a 1.9% jump in April, with over half of advance attributable to a 23.4% increase in gasoline. Prices for diesel fuel, jet fuel, plastic resins and materials, industrial chemicals, and natural gas liquids also rose. In contrast, a 10.1% decline was seen in pork. On the other hand, prices for services rose 0.3%, slowing from a 0.7% gain in April, with over 40% of the increase due to a 4.8% rise in prices for portfolio management. However, margins for machinery and equipment wholesaling fell 1.9% and a drop was also recorded for fuels and lubricants retailing. Year-on-year, the PPI rose 6.5%, the most since November 2022 and above forecasts of 6.4%. Meanwhile, core PPI increased 0.4% on the month, compared to forecasts of 0.5% and 4.9% yoy, also less than expectations of 5.4%.
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