June US Producer Price Index, Core PPI Flat, Below Expectations

08:41 AM EDT, 07/16/2025 (MT Newswires) -- The US Producer Price Index held steady in June following a 0.3% increase in May, below a 0.2% gain expected in a survey compiled by Bloomberg.

Energy prices rose by 0.6% in the month, while food prices rose by 0.2%.

After excluding food and energy prices, core PPI held steady, below the 0.2% gain expected and following a 0.4% gain in the previous month.

PPI was up 2.3% year-over-year in June while core PPI rose by 2.6% year-over-year, both below their May rates.

The monthly producer price index, or PPI, reported by the Bureau of Labor Statistics measures the index level of prices received by producers for products such as energy, food, vehicles, and services. The core measure, excluding the volatile food and energy components, is a measure of underlying inflation.

Sharply higher prices are a sign of demand, but an increase at the producer level without a pass-through to the consumer level would suggest smaller profits at the retail level. As a result, the stock reaction depends on the movements at both levels. Higher inflation is generally a negative for bonds.

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