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

U.S. producer prices fell 0.3% in June due to plunging energy prices, marking the largest decline since April 2025. However, heightened tensions with Iran over the Strait of Hormuz are creating uncertainty, while annual wholesale inflation remains at 5.5%. Consumer prices also dropped 0.4%, easing pressure on the Federal Reserve to raise interest rates despite inflation still exceeding its 2% target.