CNN
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US wholesale inflation was muted in June, despite expectations for an increase amid the rollout of tariffs.
The Producer Price Index, which measures the average change in prices paid to producers, was unchanged from May, and the annual rate of wholesale-level inflation slowed 2.3%, helped lower in part because of base effects (where the year-ago period experienced higher inflation).
Economists had expected that prices would rise 0.2% on a monthly basis and 2.5% annually, according to FactSet.
Stock futures moved higher after the data release. Dow futures were up 165 points, or 0.37%. S&P 500 futures gained 0.21% and Nasdaq 100 futures rose 0.08%, erasing earlier losses.
Thursday’s report from the Bureau of Labor Statistics showed a tamer pricing environment for producers versus that in May, when PPI rose 0.3% and 2.7% annually.
Although gas prices went up in June, falling services prices — particularly at hotels, airlines and car dealerships — drove the overall index lower. Travel and leisure prices have been lower than they typically are, a potential indication that consumer demand dropped off amid a period of high economic uncertainty.
PPI serves as a potential bellwether for price changes consumers may see in the months ahead.
On Tuesday, the closely watched Consumer Price Index showed that prices moved steadily higher in June, lifted in part by more expensive goods in tariff-sensitive industries.
Core PPI, which excludes the volatile components of food and energy, also held flat from May while the annual rate slowed to 2.6% from 3.2%.
This is a developing story and will be updated.
