U.S. wholesale prices fell 0.3% from May to June—the biggest monthly drop since April 2025—reversing May’s 0.6% increase as energy costs pulled producer inflation lower.
Gasoline prices plunged 12% in June and food prices also dipped, while annual producer inflation slowed to 5.5%; core producer prices still rose 0.2% on the month and 4.7% from a year earlier.
The report followed a 0.4% monthly drop in consumer prices, easing near-term pressure on the Federal Reserve to raise rates this year even as inflation remains above its 2% target.
Energy is now the main risk to that cooling trend after Trump announced a blockade in the Strait of Hormuz, a chokepoint for about one-fifth of global oil and gas, raising fears June’s relief could prove short-lived.