Core Insights - The Producer Price Index (PPI) in the U.S. showed no change month-over-month in June, with a year-over-year increase of 2.3%, the smallest since September of the previous year [1][2] - Core PPI, excluding food and energy, remained flat month-over-month and increased by 2.6% year-over-year, marking the lowest annual growth rate since the end of 2023 [1][2] Inflation Trends - The decline in travel-related service costs offset the rise in goods prices, indicating a mixed inflationary environment [1] - Economists expect inflation to gradually rise as more companies attempt to pass on increased trade costs to consumers, despite current moderate inflation levels [2] Price Movements - Core commodity prices, excluding food and energy, increased by 0.3%, while energy costs rose significantly, particularly natural gas prices for electricity generation, which saw the largest increase in three years [3] - Service costs decreased by 0.1%, primarily due to a 4.1% drop in travel accommodation prices and a 2.7% decline in airline passenger service prices, the largest drop since May 2024 [3] Future Indicators - The PCE report, which is closely monitored as it includes components used to calculate the inflation metrics favored by the Federal Reserve, is expected to be released later this month [4]