US Producer Prices Steady in June Despite Tariff Pressures

U.S. wholesale inflation remained steady in June, with the Producer Price Index (PPI) for final demand unchanged month-over-month and rising 2.3% year-over-year, down from 2.7% in May. The stability in producer prices was driven by offsetting factors: rising costs for goods due to President Donald Trump's tariffs on imports were balanced by weaker service sector prices, particularly in travel and accommodation. Consumer prices showed solid gains in tariff-exposed goods, signaling potential inflationary effects from import duties announced earlier in the year. Economists anticipate that tariffs set to take effect in August on imports from multiple countries could keep goods prices elevated through the end of the year. The Federal Reserve is expected to maintain its benchmark interest rates in the 4.25%-4.50% range while closely monitoring core inflation measures. This mixed inflation data highlights ongoing tensions between tariff-driven price pressures and subdued service sector demand.