US producer price inflation slows to 2.3% in June

The US annual producer price inflation rate slowed in June, though prices remained flat on a monthly basis due to rising costs of communication equipment and gasoline, which were offset by weaker egg and thermoplastic prices.

Data released by the US Department of Labor on Wednesday showed that the Producer Price Index (PPI) climbed by 2.3% year-on-year in June, versus 2.7% in May.

Core producer inflation—which excludes volatile components like food, energy, and trade services—also slowed to 2.5% in June, compared to 2.8% in May.

On a monthly basis, the PPI was unchanged, following a 0.3% hike in May, missing expectations of a 0.2% surge.

Final goods prices rose by 0.3% in June, marking the highest monthly increase since February. Energy and food prices also soared 0.6% and 0.2%, respectively.

Meanwhile, service prices dipped by 0.1% in June, due to a 0.9% decline in transportation and warehousing services, along with a drop in auto and auto parts sale services.

This data followed Tuesday’s release from the Bureau of Labor Statistics, which showed that annual consumer price inflation accelerated to 2.7% in June, in line with expectations, compared to 2.4% in May.