June wholesale prices rise less than expected in another encouraging inflation report

A customer shops in a Kroger grocery store on July 15, 2022 in Houston, Texas. 

Brandon Bell | Getty Images

The producer price index for June had a smaller-than-expected increase, the Labor Department reported Thursday, in the latest sign that inflation is calming in the United States.

The PPI for final demand rose 0.1%. Economists surveyed by Dow Jones were expecting an increase of 0.2%. The PPI climbed 0.1% when excluding food, energy and trade services, which was in line with expectations.

The producer report comes a day after the consumer price index for June showed a smaller-than-expected increase. The CPI rose just 3% year over year, its lowest level since March 2021, bolstering hopes for investors that the Federal Reserve is near the end of its rate-hiking cycle.

The wholesale producer numbers have declined faster than the consumer inflation data. In May, the headline PPI number actually fell 0.4%, and was unchanged when excluding food, energy and trade services.