PPI Inflation The overall producer price index for final demand fell 0.2% on the month, way below +0.1% forecasts. The PPI rose 2.2% from a year ago, undercutting 2.5% estimates. The core PPI, excluding food and energy, was flat vs. April, below views for a 0.3% gain. The 2.3% 12-month inflation rate came in below 2.4% forecasts. That follows May's 0.16% rise in the core CPI, the smallest monthly increase since August 2021. That could signal the renewal of a disinflationary trend. However, Powell made it clear that one inflation report isn't nearly enough to give the Fed the confidence it needs to start cutting rates.