June PPI Comes in Flat Despite Dire Forecasts

Trump Tariff Critics, Economists warned for months that President Trump’s tariffs would cause prices to surge. In June, the Producer Price Index (PPI) proved them wrong again. The Bureau of Labor Statistics (BLS) reported zero growth in wholesale prices, while experts had forecast at least a 0.2% rise.

Even core PPI, which removes volatile food and energy prices, remained unchanged. This flat performance contrasts sharply with the inflationary fears pushed by many media outlets and economic think tanks.

White House Points to Strong Track Record

In response to the report, White House officials defended the President’s economic policies. “Every month since Trump took office, core inflation has either matched or exceeded expectations,” Press Secretary Karoline Leavitt stated. “The Panicans have been wrong every step of the way.”

This narrative is further supported by year-over-year data. June’s headline PPI rose 2.3%, while core PPI hit 2.6%. Both numbers are down compared to May, marking their lowest points in nearly a year.

Economists Scramble After Another Miss

Economists had bet big on rising wholesale prices due to tariff-related cost pressures. But their predictions keep falling flat. As Vice President JD Vance pointed out, “It’s almost like the economics profession doesn’t fully understand tariffs.”

Indeed, the profession has suffered repeated credibility blows as its inflation models fail to align with real-world data. June’s surprise PPI results reinforce that gap.

Fed Under Pressure to Cut Rates

With inflation softening, President Trump is urging the Federal Reserve to slash interest rates. On Tuesday, he called for a 3-point cut, arguing that the move could save “One Trillion Dollars a year.”

The Fed is scheduled to meet at the end of July. Speculation is growing that Fed Chair Jerome Powell may step down, potentially opening the door for a Trump-aligned replacement.

Consumer Inflation Remains Controlled

Although the Consumer Price Index (CPI) ticked up slightly — 0.3% month-over-month and 2.7% year-over-year — it still stayed within manageable levels. The White House said inflation remains on track and is not spiraling out of control as critics once claimed.

Together, the CPI and PPI data suggest a resilient U.S. economy where inflation remains contained despite aggressive trade moves.

Tariffs Take Effect August 1

As more tariffs are set to launch on August 1, the economic data is a boon for the Trump Administration. His critics argued that tariffs would devastate both businesses and consumers. But the numbers suggest otherwise.

Stable producer prices and manageable consumer inflation make a strong case that Trump’s economic strategy is succeeding.

Conclusion: Trump’s Economic Wins Pile Up

With each passing month, President Trump’s economic record strengthens. Inflation is stable, wholesale prices are flat, and consumer prices are under control. The latest reports offer a reality check for economists who doubted his approach.

Trump is now turning that success into momentum, calling for major rate cuts and holding firm on trade reform. For critics, the message is clear: the data doesn’t lie — Trump’s economy is working.

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