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The Producer Price Index is unchanged for the month of June

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At 8:27 am, I posted on X that it looks like the market expects a good PPI report. The price was 1.15954. Around 7:41 am the price was 1.16107. The dollar was enjoying some strengthening.

But alas, at 8:30 am, we saw a spike in the EUR/USD at 1.16062. By 8:31, the price was at 1.16023. What did the U.S. Bureau of Labor Statistics say in its release?

In short, the Producer Price lndex for the month of June was unchanged. Prices for final demand goods advanced 0.3% and the index for final demand services decreased 0.1 percent.

Final demand goods is a measure of the average change in prices received by domestic producers of goods, services, and construction sold for personal consumption, capital investment, government, and export. In short, PPI is equal to the combination of personal consumption, capital investment, government purchases, and exports.

Examples of final demand services include traveler accommodation services, automobile and auto parts retailing, deposit services, portfolio management services, and furniture retailing services.

At 8:48 am, the EUR/USD is approximately 1.16067, right in line with the average price I calculated for the period 12:00 am to 7:00 am this morning. I suspect that the conversation will go back to concerns about the impact President Trump’s tariff policy will have on prices. Reuters reported today that traders are cautious of signs that tariffs may be impacting or causing inflation. Yields reportedly climbed after Consumer Price Index data for June showed price increases for certain goods in the month of June.

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

At 8:57 am I am now seeing a little dollar strengthening as the markets digest the data. The price is at 1.1596 at 8:58 am.

Alton Drew

16 July 2025

For legal analysis of today’s market events, contact me at altondrew@altondrew.com to reserve a consultation.

DISCLAIMER: I am not a financial advisor. These blog posts are for educational purposes only. Trading of any kind involves risks. Your trading decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary.