A measure of wholesale prices showed no change in June, providing a conflicting sign over whether tariffs threaten to boost inflation in the coming months.
The producer price index was flat, according to seasonally adjusted numbers from the Bureau of Labor Statistics reported Wednesday. Economists surveyed by Dow Jones had been looking for an increase of 0.2%.
The same was true for core PPI, which also was expected to show a 0.2% rise.
Combined with Tuesday’s consumer price index release, the data suggests that President Donald Trump‘s tariffs are indicating only a marginal bite on the U.S. economy and the prices for goods and services.
Though the numbers for headline and core wholesale inflation were subdued, final demand goods prices rose 0.3%, but were offset by a 0.1% fall in services. Within the goods category, tariff-sensitive communication equipment posted a gain of 0.8%. Core goods prices also rose 0.3%.
At the same time, the PPI level for May, initially reported as a 0.1% increase, saw an upward revision to a 0.3% gain. A 0.3% gain for goods is the biggest gain since February, the BLS reported.
On a year-over-year basis, the headline PPI was up 2.3%, compared with 2.7% in May and good for the lowest level since September 2024. The core PPI was at 2.6% on an annual basis, the smallest gain since July 2024.
Stock market futures rose following the report while Treasury yields fell.
The BLS on Tuesday reported that the consumer price index, which measures what consumers pay for goods and services, showed a monthly increase of 0.3% and an annual inflation rate of 2.7%. Core inflation was at 2.9% annually.
All of the BLS measures for annual inflation are above the Federal Reserve’s 2% target. However, Trump on Tuesday repeated his demands that the Fed start lowering its benchmark interest rate as a way to help reduce borrowing costs for the U.S.
However, markets are pricing virtually no chance of a cut when the Fed meets at the end of July, and have been reducing odds for a September move. Fed officials have said they remain cautious about the impact tariffs will have on inflation and believe the U.S. economy is in a strong enough position now that they can wait to see the impacts before acting on rates.
According to the PPI release, energy prices rose 0.6% in June, while food prices increased 0.2%. Within the food category, chicken eggs tumbled 21.8%.
