<\/p>\n
An underlying gauge of US producer price inflation was softer than expected in June, suggesting the fallout from the Iran war remained somewhat contained.<\/p>\n
The producer price index excluding food and energy increased 4.7% from a year earlier, according to Bureau of Labour Statistics data out Wednesday. It was up 0.2% from May.<\/p>\n
The overall PPI decelerated, rising 5.5% from the year before.<\/p>\n
The report suggests a decline in energy costs helped keep inflation pressures in check last month. That likely gives the Federal Reserve more room to postpone an interest-rate increase \u2014 especially after a separate report Tuesday showed consumer prices were also tame in June. However, with the Middle East conflict heating up again, the reprieve may prove short-lived.<\/p>\n
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US stock index futures rose and Treasury yields fell as investors scaled back bets on a Fed rate hike in July after the report.<\/p>\n
Fed Chairman Kevin Warsh, in testimony before Congress on Tuesday, warned against declaring \u201cmission accomplished\u201d following the favorable report on consumer prices.<\/p>\n
Energy prices fell 6.4% in June from the prior month, according to Wednesday\u2019s figures, while transportation and warehousing prices also declined. Even so, trucking freight rates have been elevated due to rising fuel costs and a shrinking pool of drivers amid President Donald Trump\u2019s immigration crackdown.<\/p>\n
Food prices, meanwhile, fell for the first time in three months. They have generally been climbing this year thanks to a combination of factors including bad weather, the war and tariffs.<\/p>\n
Several components of the PPI are also of particular interest to the Fed because they feed into its preferred inflation gauge, the personal consumption expenditures price index. Those categories showed some strength, led by increases in airfares and portfolio management fees.<\/p>\n
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Read More: US June Producer Price Components for PCE (Table)<\/p>\n
The Bureau of Economic Analysis is scheduled to release June PCE price data, along with income and spending figures, on July 30.<\/p>\n
In a separate report on Wednesday, the Federal Reserve Bank of New York\u2019s general business conditions index of factory activity picked up in July as new orders and shipments increased and a gauge of employment rose to the highest level since December 2022. A measure of prices paid eased but remained elevated, and the outlook for prices paid and received declined.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#producer #price #inflation #tamer #expected<\/p>\n","protected":false},"excerpt":{"rendered":"
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