Inflation at the wholesale level cooled significantly last month, helped by a sharp drop in energy prices, according to data released Wednesday by the Bureau of Labor Statistics.
On an annual basis, the Producer Price Index, which measures the prices businesses receive for their goods and services, slowed at a 5.5% pace in June, compared to 6.5% in May. The May reading was the highest since November 2022.
On a monthly basis, prices fell 0.3% were unchanged in June versus a 1.1% increase in the prior month.
Excluding volatile food and energy prices, core PPI slowed to a pace of 4.7% in June from the 4.9% pace seen in May.
Wholesale prices do not typically translate one for one into higher prices for consumers, but they can raise the likelihood that businesses will pass along some of those costs, especially if elevated expenses persist.
