The US PPI (Producer Price Index) inflation rate fell by 0.3% in June, marking its first monthly decline since August 2025.
This drop was driven primarily by a 12% decrease in gasoline prices, which accounted for nearly two-thirds of the 1.4% slide in final demand goods.
The PPI data follows closely on the heels of consumer inflation numbers released just one day prior, both of which missed forecasts and have shifted market expectations decisively against further Federal Reserve tightening this month.
BTC (Bitcoin) reclaimed $65,000 and ETH (Ethereum) topped $1,900 as traders cut bets on a July Fed rate hike, with CME FedWatch data showing an 87.7% probability that the Fed holds rates at 3.50% to 3.75% on July 29.
Fed Chair Kevin Warsh warned of 'no tolerance for persistently elevated inflation' in congressional testimony a day before the release, but the soft PPI print has already led to a significant repricing of Fed hike odds.