June PPI Inflation Falls to 5.5%, Below Expectations
June headline PPI came in at 5.5% versus 6.2% expected, while core PPI dropped to 4.7% (forecast 5.2%). Month-over-month PPI declined 0.3%, the steepest drop since April 2025, further reducing the likelihood of rate hikes.
June producer price inflation in the US came in below consensus estimates, according to data released Thursday.
Headline PPI fell to 5.5% year-over-year, significantly missing the 6.2% forecast. Core PPI (excluding food and energy) declined to 4.7% versus the expected 5.2%. On a monthly basis, PPI contracted by 0.3%, marking the largest month-over-month decline since April 2025.
The weaker-than-expected reading is seen as reducing the probability of further interest rate hikes by the Federal Reserve.
Source: The Kobeissi Letter