U.S. Wholesale Prices Fell 0.3 Percent in June but Remained 5.5 Percent Higher Than a Year Earlier

U.S. wholesale prices fell in June as energy costs declined sharply, the Labor Department reported Wednesday. The producer price index dropped 0.3 percent from May, the largest monthly decline since April 2025 and a reversal from the 0.6 percent increase the prior month.

Year over year, wholesale prices rose 5.5 percent in June, down from 6 percent in May. Gasoline prices plunged 12 percent in June but remained nearly 43 percent higher than a year earlier. Food prices also declined during the month.

Core wholesale prices, excluding food and energy, increased 0.2 percent from May and 4. The producer price data followed a Labor Department report the previous day showing consumer prices fell 0.4 percent in June, the biggest monthly drop in four years. Consumer prices were up 3.5 percent year over year in June, compared with 4.2 percent in May.

President Donald Trump announced a new blockade in the Strait of Hormuz on Monday. Energy prices have risen since the announcement. The June figures were cooler than expected, reducing near-term pressure on the Federal Reserve to raise interest rates.

Inflation remains above the central bank's 2 percent target. David Russell, global head of market strategy at TradeStation, said there is no near-term pressure on the Fed, but oil is in the driver’s seat over the longer term. Wholesale prices can signal future consumer inflation trends, and some components feed into the Fed’s preferred personal consumption expenditures gauge.