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%.