Biggest PPI Drop Since 2023 | S3 E154 | 07-15-26
The Producer Price Index for June came in much better than expected, with the headline number falling 0.3% instead of holding flat, the biggest monthly decline since October 2023. So what drove the drop? How does it compare to yesterday’s CPI report? Why does the softer core reading still leave the Fed with a decision to make?
This matters right now because the Fed is weighing whether to hold steady or move again in September, and this report cuts both ways. Energy prices did a lot of the work on the headline number, while core inflation is still stuck above 5% year over year, and rising tension in the Middle East could put oil prices right back in play.
In this episode, Megan covers:
📉 Why producer prices fell 0.3% in June, the biggest monthly decline since October 2023
⛽ How a 6.4% drop in energy prices pulled the headline number down
📊 Why core PPI, stripping out food, energy, and trade, rose just 0.1% against a 0.3% expectation
✈️ What’s behind the pullback in portfolio management fees and airline fares
📌 Why core inflation is stuck at 5.1% year over year and what that signals to the Fed
🎯 Why there’s still a better than 50% chance of a September rate hike
If you’re trying to make sense of what these reports mean for the Fed’s next move, this one’s worth five minutes of your time.
For a history of all Markets with Megan episodes, visit: https://marketswithmegan.FM
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