US producer prices drop 0.3% from May to June on lower energy prices, but outlook is cloudy

US producer prices fell 0.3% in June due to lower energy prices, marking the largest decline since April 2025. However, tensions with Iran and a Trump-announced blockade in the Strait of Hormuz are raising concerns about future energy costs and inflation. Year-over-year wholesale prices increased 5.5%, while core prices rose 4.7%.