June PPI cools after energy price drop, easing Fed uncertainty

U.S. headline producer prices fell 0.3% in June—the first monthly drop since August 2025—driven by a 6.4% month‑to‑month decline in final-demand energy goods, while the core PPI rose 0.2%. Year over year, headline PPI was up 5.5% and core PPI 4.7%. The softer print suggests the Fed may have room to postpone immediate rate hikes, but oil-price volatility and renewed geopolitical tensions (notably around the Strait of Hormuz) could push inflation back higher in July.