US' producer price index falls 0.3% in June as goods prices decline

18 Jul '26 2 min read Pic: Generated by ChatGPT Insights US' producer price index (PPI) for final demand fell 0.3 per cent in June as a 1.4 per cent drop in goods outweighed higher services. Sourcing teams saw easing in input-linked areas, with lower energy, fuel, thermoplastic resin, raw cotton and processed intermediate goods. Retail and service margins were firmer, including apparel, jewellery, footwear and accessories retailing, leaving cost signals mixed. The US' producer price index (PPI) for final demand fell 0.3 per cent in June 2026 on a seasonally adjusted basis, as lower goods prices outweighed a rise in services, according to data released by the US Bureau of Labor Statistics (BLS). Final demand goods prices declined 1.4 per cent, while final demand services prices moved up 0.2 per cent. The final demand goods decline was led by energy, while product-level decreases included gasoline, diesel fuel, jet fuel, crude petroleum and thermoplastic resins and materials. Raw cotton was also lower within unprocessed goods for intermediate demand. The final demand index had advanced 0.6 per cent in May and 1.1 per cent in April. On an unadjusted basis, the index increased 5.5 per cent for the 12 months ended in June, the BLS said in a press release. The index for final demand less foods, energy and trade services rose 0.1 per cent in June after increasing 0.8 per cent in May, and was up 5.1 per cent over 12 months. Within final demand goods, nearly two-thirds of the June decline to gasoline prices, which dropped 12.0 per cent. Final demand energy prices fell 6.4 per cent and final demand foods declined 0.6 per cent, while goods prices excluding foods and energy increased 0.2 per cent. Plastic products prices advanced 1.6 per cent. In final demand services, the index rose 0.2 per cent after falling 0.1 per cent in May. Over 60 per cent of the advance was attributed to margins for final demand trade services, which increased 0.4 per cent. The data also listed higher indexes for furniture retailing and for apparel, jewellery, footwear and accessories retailing, while margins for machinery and vehicle wholesaling declined 8.4 per cent. Processed goods for intermediate demand fell 1.2 per cent in June, the largest decrease since December 2022, led by a 7.3 per cent drop in processed energy goods. Fibre2Fashion News Desk Want to unlock the full story? Free for registered users - Register now to continue. Already a member? Sign in