June PPI inflation fell to 5.5% (below 6.2% forecast) and core PPI to 4.7%, reducing likelihood of Fed rate hikes.
Macro & Markets ·
June Producer Price Index inflation declined to 5.5 percent, falling below the anticipated 6.2 percent, while core PPI dropped to 4.7 percent against expectations of 5.2 percent. Month-over-month PPI inflation contracted 0.3 percent, marking the largest decline since April 2025. The softer-than-expected inflation readings have reduced expectations for additional Federal Reserve rate increases.