US producer prices fell 0.3% in June, according to the Labor Department’s Bureau of Labor Statistics. This decrease was driven by a 1.4% decline in goods prices, including a 6.4% drop in energy products. The Producer Price Index for final demand had risen 0.6% in May.
Inflation Trends
The 12-month increase in the PPI was 5.5% in June, down from 6.0% in May. The decrease in producer prices may indicate that inflation is slowing down. The Consumer Price Index also dropped 0.4% in June, the largest decline since April 2020.
The Federal Reserve is closely watching inflation trends as it considers interest rate decisions. The central bank aims to keep inflation at 2% and has indicated that it will take action to prevent persistently elevated inflation.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
