Wholesale inflation dipped in June, the Bureau of Labor Statistics reported Wednesday, with the Producer Price Index for final demand falling 0.3%. It marked the first time the index has moved lower on a monthly basis since August 2025. And the June pullback in wholesale prices came before the ceasefire between the U.S. and Iran collapsed, driving oil prices higher again.
Final demand prices had risen 0.6% in May and 1.1% in April. On an annual basis, the index for final demand rose 5.5% through June.
The June decline was driven by a 1.4% drop in prices for final demand goods — the largest such decrease since July 2022, when goods prices fell 1.9%. Energy prices led the goods decline, falling 6.4% for the month. Food prices also slipped 0.6%. Prices for final demand goods excluding food and energy edged up 0.2%.
Gasoline accounted for nearly two-thirds of the June decline in final demand goods prices, dropping 12%. Diesel fuel, jet fuel, fresh vegetables, crude petroleum, and thermoplastic resins also fell. Plastic products and residential electric power were among the categories that posted increases.
Final demand services prices rose 0.2% in June after falling 0.1% in May. More than 60% of that gain came from trade services margins, which advanced 0.4%. Margins for fuels and lubricants retailing jumped 13%, accounting for roughly half of the services increase. Margins for machinery and vehicle wholesaling declined 8.4%.
The core PPI measure — final demand excluding food, energy, and trade services — rose 0.1% in June after jumping 0.8% in May. That measure was up 5.1% over the prior 12 months.
The June result met analyst expectations, according to Barron's. Economists had forecast a 0.3% drop for the month. Core PPI came in at 0.2%, short of the 0.3% gain that forecasters had anticipated, according to CNBC.
At the intermediate demand level, prices for processed goods fell 1.2% — the largest decline since December 2022 — driven by a 7.3% drop in processed energy goods. Prices for unprocessed goods fell 4.1%, the steepest drop since May 2023, with unprocessed energy materials down 8.1%. Crude petroleum fell 12.1% and diesel fuel fell 18%.
The next PPI report, covering July 2026, is scheduled for release on Aug. 13, 2026.