US producer price inflation slows to 5.5% in June

Producer price inflation in the United States slowed in June, driven by lower energy costs, signaling a decline in wholesale inflationary pressures despite ongoing uncertainty linked to geopolitical tensions in the Middle East.

Data released today by the U.S. Department of Labor showed that the Producer Price Index (PPI) fell by 0.3 percent on a monthly basis in June, marking the first monthly decline since August 2025.

On an annual basis, the index rose by 5.5 percent in June, down from 6.0 percent in May, a slowdown that exceeded market expectations, according to Agence France-Presse (AFP).

The decline was driven by lower goods prices, which recorded their steepest drop since mid-2022, while energy prices fell by 6.4 percent, as gasoline, diesel, jet fuel, and other energy products became cheaper.

Oil prices had surged sharply following U.S. and Israeli strikes on Iran in late February, and the subsequent military escalation that disrupted the Middle East region.