US producer inflation eased in June as energy costs fell

Wholesale inflation in the United States eased in June as energy costs fell, government data showed Wednesday, although fighting in the Middle East has since resumed.

The Labor Department said the producer price index fell 0.3 percent from May. It was the first monthly contraction since August 2025. Compared with a year earlier, producer prices were up 5.5 percent in June, a smaller increase than the 6.0 percent rise recorded in May.

The pullback came as goods costs cooled, posting their biggest decline since mid-2022. Energy prices fell 6.4 percent, with lower costs for gasoline, diesel fuel, jet fuel and other products.

The source report said oil prices had surged after US-Israel strikes targeting Iran in late February prompted Tehran's retaliation and pushed the Middle East into war. It said Iran virtually blocked off the Strait of Hormuz, a critical route for global energy transit, sending costs higher. US households and businesses have been dealing with higher gasoline and diesel costs.

US President Donald Trump also ordered a blockade on Tehran's ports. Restrictions eased after the sides agreed to a preliminary deal in June, but the US military relaunched the blockade on Wednesday.