FX.co ★ US Producer Prices Record Surprise Decline

US producer prices fell 0.3% month-over-month in June 2026, following a downwardly revised 0.6% increase in May and defying expectations for no change. This was the first decline in the Producer Price Index (PPI) since August 2025 and the largest drop since April of the previous year.

Goods prices fell 1.4%, the sharpest decline since July 2022, driven by a 12% plunge in gasoline prices. Costs also decreased for diesel fuel, jet fuel, fresh vegetables (excluding potatoes), crude petroleum, and thermoplastic resins and materials.

In contrast, prices for services rose 0.2% in June, rebounding from a 0.1% decline in May. Roughly half of this increase was attributable to a 13% jump in margins for fuels and lubricants retailing. There were also gains in the indexes for securities brokerage, dealing, and investment advice; furniture retailing; and apparel, jewelry, and footwear retailing.

On an annual basis, producer prices were up 5.5%, down from 6% in May and below market expectations of 6.2%. Meanwhile, core producer prices rose 0.2% month-over-month, undershooting forecasts of a 0.4% increase, and the annual core rate stood at 4.7%, also below expectations of 5.2%.