Inflation cools further—confirmed again! The U.S. June PPI fell 0.3% month-over-month to a new recent low, with a major driver being a 6.4% drop in energy prices

Inflation cools down—strong additional proof! According to the latest data released today by the U.S. Bureau of Labor Statistics (BLS), the U.S. Producer Price Index (PPI) for June 2026 fell 0.3% month over month. The drop was mainly driven by a sharp 6.4% plunge in energy prices, hitting a recent low. In addition, the year-over-year growth rate for June PPI also eased to 5.5%, and core PPI likewise slowed in tandem. Taken together, these signs indicate that inflationary pressure in the U.S. upstream supply chain has significantly eased.
(Background recap: Fed’s new chairman Hsu makes his first trip to testify before Congress: “zero tolerance” for high inflation, calling out AI investment as the biggest economic highlight)
(Background add-on: CPI cools off and shorts squeeze! Bitcoin rockets to $65,100; the air force bloodbath liquidates nearly 70 thousand people for $355 million in wrecks)

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• Energy drops 6.4% to lead the plunge; goods prices log the biggest decline in two years
• Services growth is moderate; core PPI growth slows to 0.1%
• Intermediate demand falls across the board; rate cuts by the Fed add more confidence

After yesterday’s upside from the U.S. Consumer Price Index (CPI) cooling, the latest Producer Price Index (PPI) released in the U.S. also came with good news. On July 15, 2026, evening Taipei time (8:30 a.m. U.S. Eastern Time), the U.S. Bureau of Labor Statistics (BLS) officially published the June PPI report.

The data show that the U.S. June final demand PPI decreased 0.3% month over month, not only sharply lower than May’s rise of 0.6% and April’s rise of 1.1%, but also posting the most notable drop in recent times. Meanwhile, the 12-month PPI year-over-year growth rate, not seasonally adjusted, came in at 5.5%, also down meaningfully from the prior value of 6.5%, indicating that inflation pressure on the wholesale side in the U.S. is accelerating its cooldown.

Energy drops 6.4% to lead the plunge; goods prices log the biggest decline in two years

This shift in PPI into negative growth was mainly due to a rapid fall in “final demand goods” prices. The report said that in June, the overall price of final demand goods fell 1.4%, recording the largest single-month drop since July 2022. Among them, the 6.4% crash in energy prices was the biggest driver of the slowdown—especially gasoline, which plunged 12.0% within the month—while diesel, jet fuel, and crude oil prices also fell sharply. In addition, food prices also edged down 0.6%. Excluding volatile food and energy, other final demand goods prices rose only slightly by 0.2%.

Services growth is moderate; core PPI growth slows to 0.1%

In the services sector, June final demand services prices rose slightly by 0.2%, compared with a decline of 0.1% in May. The main factor supporting services was that the retail spread for fuels and lubricants surged 13.0%, lifting the trade services spread by 0.4%; conversely, transportation and warehousing services fell slightly by 0.1%.

It is worth noting that after excluding food, energy, and trade services, the “core PPI” indicator rose only 0.1% month over month in June, compared with a 0.8% gain in May—showing an extreme narrowing. The core PPI year-over-year rate stood at 5.1%. This data suggests that even if smaller components with higher volatility are removed, overall price stickiness in the U.S. upstream market is gradually loosening.

Intermediate demand falls across the board; Fed rate cuts add more confidence

In addition, intermediate demand—reflecting more front-end changes in the production chain—also showed an across-the-board downward trend. In June, processed goods and unprocessed goods fell 1.2% and 4.1%, respectively. Among them, unprocessed energy materials dropped 8.1%, indicating that in the coming months, terminal goods prices are highly likely to remain within a cooling channel.

With CPI and PPI releasing strong signals of controlled inflation for two consecutive days, expectations in global financial markets that the Fed will start cutting rates in the second half are set to intensify further. This is undoubtedly a long-term positive for liquidity in risk assets such as Bitcoin. The Labor Statistics Bureau said that the next July PPI data is expected to be released on August 13, and investors should continue to closely watch it.