Quick Review of the U.S. June PPI Data

The U.S. June PPI remained basically flat month-on-month, mainly suppressed by a decline in service costs, indicating that companies are absorbing at least part of the rising costs from import tariffs. The PPI report follows the June CPI data, which shows that higher tariffs are gradually being passed on to multiple categories, including household goods, appliances, and leisure products. Although inflation has been generally moderate this year, many economists expect inflation to gradually heat up as more companies attempt to offset higher trade costs