US wholesale inflation eases in June as energy prices tank, but the relief has an expiration date

Wholesale inflation in the United States took a meaningful step back in June 2026, with producer prices falling 0.3% month-over-month after surging 1.1% in May. The Producer Price Index report, released by the US Bureau of Labor Statistics on July 15, gives markets a preview of where consumer inflation is heading.

The annual PPI reading came in at 5.5% year-over-year, below the 6.2% forecast markets had priced in and the softest reading in three months.

Energy did all the heavy lifting

Almost none of this improvement came from a broad cooldown in producer costs. It came from one sector collapsing.

Final demand energy prices dropped 6.4% month-over-month in June. Gasoline fell 12.0%, jet fuel dropped 17.2%, and diesel slid 18.0%.