Wholesale inflation in the United States eased in June as energy costs fell on hopes of a lasting resolution to the Middle East war, US government data showed on Wednesday, although fighting has since resumed.

The producer price index (PPI) dropped by 0.3 percent month-on-month, the first such contraction since August 2025, said the Labour Department.

Compared with a year ago, PPI was up 5.5 percent last month – also a smaller increase than the 6.0 percent uptick seen in May.

The pull-back came as goods costs cooled, logging its biggest decline since mid-2022, while energy prices in particular tumbled by 6.4 percent.

Petrol costs dropped, as did diesel fuel, jet fuel and other products.

Oil prices have surged since US-Israel strikes targeting Iran in late February sparked Tehran's retaliation and plunged the Middle East into war.

Iran virtually blocked off the Strait of Hormuz, a critical waterway for global energy transit, sending costs rocketing.

US households and businesses have since been grappling with steeper costs of the petrol and diesel they needed.

US President Donald Trump also ordered a blockade on Tehran's ports. While restrictions eased after both sides agreed to a preliminary deal in June, the US military relaunched the blockade on Wednesday. (AFP)



Edited by Robert Kemp