Prices paid to American businesses for goods and services held steady in June, defying predictions that tariffs would create inflationary presssures in the U.S. economy.
The producer price index was unchanged in June compared with the previous month, the Department of Labor said Wednesday. Economists had expected a rise of 0.2 percent after a 0.3 percent rise in May and a 0.3 percent decline in April.
Compared with a year ago, the producer price index (PPI) is up 2.3 percent, a significantly slower rate of inflation than the 2.5 percent forecast and the 2.6 percent reported in May.
PPI for final demand measures the prices paid to American businesses for goods and services. It includes sales to consumers, households, businesses, and foreign purchasers, a broader array of customers than is measured by the consumer price index. Although it is sometimes referred to as a “wholesale” price index, it is not an index of wholesale prices.
