U.S. Producer Prices Fell 0.3% in June, Rose 5.5% from Year Earlier

U.S. producer prices fell 0.3% from May to June 2026, the largest monthly decline since April 2025, the Labor Department reported Wednesday. The drop reversed a 0.6% increase from April to May and marked the first monthly decrease in wholesale inflation in two months.

Gasoline prices plunged 12% in June from May, while food prices also declined. Year-over-year, producer prices rose 5.5% in June compared with 6.0% in May. Core producer prices, excluding food and energy, increased 0.2% month-over-month and 4.7% from a year earlier.

Consumer prices fell 0.4% from May to June, the largest monthly drop in four years, the department said. Year-over-year consumer inflation eased to 3.5% in June from 4.2% in May. The June figures came a day after the Labor Department released the consumer price data.

Wholesale inflation ran cooler than economists had forecast. ” Inflation remains above the Fed’s 2% target. Energy prices have risen since President Donald Trump announced a new blockade in the Strait of Hormuz on Monday.

Wholesale prices can signal future consumer inflation trends, and some components feed into the Fed’s preferred personal consumption expenditures gauge.