US wholesale inflation moderates in June
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The news: US wholesale inflation moderated to show no change in June, against a 0.2% increase which had been forecast.
The numbers: Data published by the US Bureau of Labor Statistics on Wednesday saw the US producer price index (PPI) hold steady after an upwardly revised 0.3% gain in May. US wholesale prices rose 2.3% from a year earlier, the least since September.
While headline and core wholesale inflation were subdued, final demand goods prices rose 0.3% and were offset by a 0.1% fall in services. Within the goods category, communication equipment which is sensitive to tariff changes posted an increase of 0.8%. Core goods prices (excluding food and energy) also rose 0.3%.
Airline passenger services slid to 2.7%, marking its biggest decline since May 2024.
The context: While Tuesday’s consumer price index showed higher tariffs are beginning to filter through to consumer goods, Wednesday’s wholesale data suggests that manufacturers are proceeding cautiously on the extent to which they can pass on the higher US tariffs to customers.
The sources: Bureau of Labor Statistics, Bloomberg, CNBC
