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US wholesale prices for June point to further easing of inflation pressures

Wholesale prices in the United States decelerated again last month, the latest sign that inflationary pressures are easing in the face of the Federal Reserve’s streak of interest rate hikes

Paul Wiseman
Thursday 13 July 2023 13:35 BST

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Wholesale prices in the United States decelerated again last month, the latest sign that inflationary pressures are easing in the face of the Federal Reserve's streak of interest rate hikes.

The government's producer price index — which measures inflation before it reaches consumers — rose just 0.1% last month from June 2022, the smallest such increase since August 2020. And from May to June, prices rose an identical 0.1% after having fallen 0.4% from April to May.

The index that the Labor Department issued Thursday reflects prices charged by manufacturers, farmers and wholesalers. It can provide an early sign of how fast consumer inflation will rise.

On Wednesday, the government reported that consumer prices in June rose just 3% over the previous 12 months — the mildest such pace since early 2021. The slowdown was driven by easing prices for gasoline, airline fares, used cars and groceries. Year-over-year consumer price inflation has steadily dropped since peaking at a four-decade high of 9.1% in June 2022.

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