WASHINGTON (AP) — U.S. wholesale inflation cooled last month, despite worries that President Donald Trump’s tariffs would push prices higher for goods before they reach consumers.
The Labor Department reported Wednesday that its producer price index was unchanged last month from May after rising 0.3% the previous month. June wholesale prices rose 2.3% from a year earlier, the smallest year-over-year gain since September. Both measures came in below what economists had expected.
Excluding volatile food and energy prices, so called core producer prices were also unchanged from May and up 2.6% from June 2024.
The report on wholesale inflation arrived a day after the Labor Department reported that consumer prices last month rose 2.7% from June 2024, the biggest year-over-year gain since February, as Trump’s sweeping tariffs pushed up the cost of everything from groceries to appliances.
Consumer prices and producers prices do not always move in tandem, however.
Bradley Saunders, North America economist at Capital Economics, saw some signs of the impact of Trump’s tariffs in a 0.3% increase in core wholesale goods prices. Furniture prices rose 1% from May and home electronics 0.8%, he noted. Both of those types of goods are heavily imported.
But producer prices at steel mills fell 5.5% despite Trump’s hefty 50% tax on imported steel.
Some companies bought products before Trump rolled out his tariffs and have relied on those inventories to keep a lid on prices. But Saunders warned that those inventories are running low and that Trump plans to impose stiff tariffs (such as 25% levies on Japanese and South Korean imports) starting Aug. 1.
“We are not out of the woods yet,’’ Saunders wrote in a commentary.
The producer price report showed that auto retailers' profit margins dropped 5.4%, suggesting that car dealers were eating the cost of Trump's 25% tariff on some imported cars and auto parts. That might explain why new vehicle prices fell last month in the consumer price report Tuesday.
“We doubt that auto retailers will continue to absorb the tariffs indefinitely,'' wrote Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, ”but they have room to fall a good deal further after they surged during the spike in sales as people sought to get ahead of tariffs on imported vehicles.''
Wholesale prices can offer an early look at where consumer inflation might be headed. Economists also monitor the report closely because some of its components, notably measures of health care and financial services, flow into the Federal Reserve’s preferred inflation gauge — the personal consumption expenditures, or PCE, index.
Inflation began to flare up for the first time in decades in 2021, as the economy roared back with unexpected strength from COVID-19 lockdowns. That prompted the Fed to raise its benchmark interest rate 11 times in 2022 and 2023. The higher borrowing costs helped bring inflation down from the peaks it reached in 2022, and last year the Fed felt comfortable enough with the progress to cut rates three times.
But it has turned cautious this year while it waits to see the inflationary impact of Trump’s trade policies. Trump has aggressively stepped up pressure on the Fed to cut rates, which has been seen as a threat to the central bank’s independence.
File - A truck loaded with new cars arrives arrives at the Stellantis Belvidere Assembly Plant on Monday, July 10, 2023, in Belvidere. Ill. (AP Photo/Charles Rex Arbogast, File)
FILE- In this Jan. 28, 2019, file photo a container ship is unloaded at the Port of Oakland in Oakland, Calif. (AP Photo/Ben Margot, File)
Los Angeles Chargers (11-5) at Denver (13-3)
Sunday, 4:25 EST, CBS.
BetMGM NFL Odds: Broncos by 12 1/2.
Against the spread: Chargers 8-7-1; Broncos 6-9-1.
Series record: Broncos lead 72-58-1.
Last meeting: Chargers beat Broncos 23-20 on Sept. 21, 2025, in Inglewood, California.
Last week: Chargers lost to Texans 20-16; Broncos beat Chiefs 20-13.
Chargers offense: overall (12), rush (12), pass (15), scoring (T-16).
Chargers defense: overall (4), rush (9), pass (6), scoring (7).
Broncos offense: overall (9), rush (19), pass (9), scoring (14).
Broncos defense: overall (3), rush (2), pass (8), scoring (4).
Turnover differential: Chargers plus-4 ; Broncos minus-5.
QB Trey Lance is making his sixth career start and first for the Chargers. He's appeared in three games this season, completing 7 of 13 passes for 90 yards with no touchdowns, no interceptions and two sacks.
WR Courtland Sutton surpassed 1,000 yards last week, but he dropped a touchdown pass and caught just four of the 10 passes Bo Nix threw his way. Sutton has 73 receptions for 1,012 yards and seven TDs this season, a similar output to last year when he caught 81 passes for 1,081 yards and eight TDs.
The Chargers offensive line and backup QB versus Denver's dominant pass rush. The Broncos have had a franchise-record and NFL-best 64 sacks so far and are within striking distance of the NFL record of 72 set by the 1984 Chicago Bears, who had a dozen in their season finale that year.
Chargers: Coach Jim Harbaugh said he's sitting QB Justin Herbert (left hand) for the finale along with several other starters. Rookie RB Omarion Hampton (ankle) missed practice time this week as did CB Nikko Reed (hamstring) and OL Jamaree Salyer (hamstring). Harbaugh said he doesn't expect Salyer to play Sunday.
Broncos: LB Dre Greenlaw has been dealing with a hamstring injury and won't play in the finale. WR Pat Bryant (concussion), TE Nate Adkins (knee) and DL John Franklin-Meyers (hip) were limited in practice this week.
The Chargers have won all three games against Denver and Sean Payton with Jim Harbaugh as head coach. All three have been one-score games.
The Chargers clinched a playoff berth for the second straight season, the first time that's happened since they reached the postseason four consecutive times from 2006-09. ... The Bolts are coming off a 20-16 loss to Houston in which they were 2 of 5 in the red zone while the defense allowed a pair of rare long touchdown passes to open the game. K Cameron Dicker missed a field goal from inside 40 yards for the first time in his career and pulled an extra point wide for the first time this season. ... The Chargers are the only team that's unbeaten (5-0) in the AFC West this season. ... RB Omarion Hampton has a touchdown in three of his past four games. ... WR Quentin Johnston is coming off a 98-yard performance in Week 17. ... WR Keenan Allen had seven catches for 65 yards and a touchdown against Denver in Week 3. ... The Broncos were the first team to clinch a playoff spot and can earn the AFC's No. 1 overall seed with a win Sunday. The Broncos won the AFC West for the first time since 2015, ending the Kansas City Chiefs' nine-year reign atop the division. ... Broncos QB Bo Nix is tied for the second-most victories over the first two seasons at his position with 23. With a win Sunday, he'll tie Russell Wilson's NFL record of 24 wins in his first two seasons. ... Nix needs one TD pass to become the fourth QB in NFL history with at least 25 in each of his first two seasons. ... Nix is the third player ever, joining Herbert and Peyton Manning, with 3,500-plus passing yards and 25 or more TD passes in each of his first two NFL seasons. ... RB RJ Harvey leads rookies with a dozen TDs this season. He's scored a TD in five consecutive games. ... LB Nik Bonitto had two sacks in Week 3 against the Chargers.
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Los Angeles Chargers tight end Oronde Gadsden (86) celebrates his touchdown during the second half of an NFL football game against the Houston Texans Saturday, Dec. 27, 2025, in Inglewood, Calif. (AP Photo/Kevork Djansezian)
Denver Broncos linebacker Alex Singleton reacts during the second half of an NFL football game against the Kansas City Chiefs Thursday, Dec. 25, 2025, in Kansas City. (AP Photo/Charlie Riedel)
Los Angeles Chargers running back Omarion Hampton (8) celebrates his touchdown with quarterback Justin Herbert (10) during the second half of an NFL football game against the Houston Texans Saturday, Dec. 27, 2025, in Inglewood, Calif. (AP Photo/Kevork Djansezian)
