US wholesale inflation fell from May to June on plunging energy prices, but intensifying hostilities with Iran are clouding the outlook. The Labor Department reported that its producer price index dropped 0.3% from May, the biggest decline since April 2025 and a reversal from a 0.6% uptick the month before.
Energy Prices
Gasoline prices plunged 12% in June but are still up nearly 43% from June 2025, pushed higher by the Iran war. Food prices also dipped in June. Excluding volatile food and energy prices, so-called core wholesale prices were up 4.7% from June 2025 and 0.2% from May.
The producer price report came out a day after the Labor Department said consumer prices dropped 0.4% from May to June, the biggest monthly drop in four years. Compared to a year earlier, they were up 3.5% last month, down from 4.2% in May.
Original reporting: KTBS 3 (Shreveport) — read the source article.
