FX.co ★ US Producer Prices Below Forecasts

In June 2025, US producer prices remained steady compared to May, in contrast to the previously revised increase of 0.3%. This figure also fell short of the anticipated 0.2% rise. Service prices experienced a minor decline of 0.1% after a 0.4% growth in May, driven primarily by a significant 4.1% decrease in traveler accommodation services. The automotive sector, including both retail and parts, along with deposit services, airline passenger services, and food and alcohol wholesaling, also saw price reductions. Conversely, goods prices increased by 0.3%, marking the largest rise since February, primarily attributed to a 0.8% hike in the cost of communication and related equipment. Furthermore, the indexes for gasoline, residential electric power, poultry products, meats, and tree nuts exhibited upward movement. Annually, producer inflation decreased to 2.3%, the lowest since September 2024, down from a revised 2.7% in May and below the predicted 2.5%. The Core Producer Price Index (PPI) remained neutral, whereas forecasts had anticipated a 0.2% increase, with the annual core rate dropping to 2.6% from 3.2%, again falling short of the expected 2.7%.