A day after the Consumer Price Index reignited concerns over sticky inflation, Wednesday’s Producer Price Index (PPI) offered a more benign view.
Producer prices were flat in June, down from May’s upwardly revised 0.3% increase and coming in below the 0.2% consensus estimate. On an annual basis, PPI slowed to 2.3%, the lowest since September 2024, also weaker than the expected 2.5% and down from 2.7% in May.
Core PPI, which strips out food and energy, also was also flat during the month, softer than the 0.2% forecast. The year-over-year rate cooled to 2.6% from an upwardly revised 3.2% previously, and 0.1 percentage point below the economist consensus.
Communication …