US wholesale inflation rose in June despite President Donald Trump’s hefty tariffs on global trading partners. The Producer Price Index (PPI), which measures prices paid to producers, remained unchanged from May. This was due to a steep drop-off in travel and other services, masking an increase in the cost of goods.
However, finished consumer goods prices rose 0.4% in June, accelerating from a 0.3% increase in May. The core PPI, which excludes volatile components like food and energy, also held flat from May, slowing to 2.6% annually.
Economists had expected prices to rise 0.2% on a monthly basis and 2.5% annually. Instead, the report showed a tamer pricing environment for producers compared to May. The Consumer Price Index, which measures inflation at the retail level, moved higher in June due to more expensive goods in tariff-sensitive industries.
The report presents a complicated picture of the US economy as Trump’s trade war unfolds. Businesses, consumers, and the central bank must navigate the impact. Chief economists say the PPI is a potential bellwether for price changes consumers may see in the months ahead.
While the tariffs are raising prices of manufactured goods, wobbly demand has contained broader inflation. Economists warn that businesses’ pricing power is limited by skittish consumer demand. The impact of Trump’s trade war on US wholesale inflation remains uncertain, creating a complex economic landscape.
Source: https://edition.cnn.com/2025/07/16/economy/us-ppi-wholesale-inflation-june