Wholesale Prices Retreat After Energy Goods Reverse Course

The Producer Price Index for final demand (also known as wholesale prices) declined 0.3% over the month in June after rising 0.6% in May. Over the year, producer prices increased 5.5%, down from the 6.0% gain in May. Meanwhile, prices for final demand excluding foods, energy and trade services climbed 5.1% from June 2025, a similar yearly increase as in May.

Within final demand, prices for services moved up 0.2% in June, after ticking down 0.1% in May. Meanwhile, prices for goods fell 1.4% in June, the largest monthly decline since July 2022, after surging 2.3% in May. Within the final demand services index, margins for fuels and lubricants retailing jumped 13.0%, accounting for over half of the June increase. Within the final demand goods index, prices for gasoline dropped 12.0%, accounting for nearly two-thirds of the June decrease for the index. At the same time, prices for diesel fuel fell 18.0% over the month and 65.8% from June 2025.

Prices for processed goods for intermediate demand moved down 1.2% in June, the largest decrease since December 2022, after rising 2.8% in May. The decline in the index was driven by a 7.3% drop in prices for processed energy goods. Over the year, prices for processed goods for intermediate demand advanced 11.1%, down from 12.5% in May.

Meanwhile, prices for unprocessed goods for intermediate demand fell 4.1% in June, the largest decrease since May 2023, after increasing 3.2% in May. More than 70% of the monthly decline was attributable to an 8.1% drop in prices for unprocessed energy materials. Within this index, prices for crude petroleum declined 12.1% but are up 41.3% from June 2025. In contrast, prices for natural gas jumped 16.6% in June but were down 16.0% year-over-year. Over the year, prices for unprocessed goods for intermediate demand climbed 13.0%, after surging 20.6% in May.