The Producer Price Index for final demand increased 0.1% in June, showing that inflation continues to slow, the U.S. Bureau of Labor Statistics reported July 13.

The increase in wholesale prices over the past 12 months slowed from 1.1% in May. June’s rate was the lowest reading since September 2020.

Economists polled by the Wall Street Journal had predicted a 0.2% increase in the PPI for June, business media outlets reported.

“The PPI report captures what companies pay for supplies such as fuel, packaging and so forth,” MarketWatch reported. “These costs are often passed on to customers at the retail level and give an idea of whether inflation is rising or falling.”

The index for final demand services increased 0.2% in June, the same as in May. Leading the June advance, prices for final demand services — except for trade, transportation and warehousing — moved up 0.3%.

The PPI for final demand declined 0.3% in May.

Margins for final demand trade services also rose 0.2%. The trade indexes measure changes in margins received by wholesalers and retailers. However, the index for final demand transportation and warehousing services decreased 0.9%, according to BLS data.

On July 12, the Labor Department said the Consumer-Price Index climbed 3% in June compared with a year earlier, its slowest pace in more than two years.