U.S. wholesale prices were unchanged in June, undershooting economists’ expectations for a 0.2% advance and marking the slowest annual increase since September 2024. The Producer Price Index rose 2.3% from a year earlier after a revised 2.7% gain in May, while the core gauge that excludes food and energy also posted no monthly change and advanced 2.6% on the year. The flat headline reading reflected a 0.3% rise in goods prices—led by communication equipment and other tariff-sensitive categories—offset by a 0.1% decline in services costs, notably in hotel and air travel. May data were revised higher to a 0.3% monthly gain, but the latest figures suggest companies are absorbing much of the cost from April’s 145% tariff on Chinese goods, limiting pass-through to broader inflation. Separate Federal Reserve data showed industrial production rose 0.3% in June, the first increase in four months and ahead of the 0.1% consensus. Manufacturing output edged up 0.1%, utility output jumped 2.8% and capacity utilisation improved to 77.6%, though it remains below the long-run average. The cooler-than-expected producer inflation and firmer factory output lifted U.S. equity futures and nudged Treasury yields lower, as investors weighed the reports’ implications for the Federal Reserve’s next policy moves.