(DC Pundit) – So much for the media’s panic over tariffs “inevitably” triggering inflation. The latest data from the Department of Labor confirms what President Trump has been saying for years: America’s economy doesn’t crumble under pressure, it powers through it when run correctly. And under President Trump’s leadership, it is doing just that.
According to the Producer Price Index (PPI) report released Wednesday, prices paid to U.S. businesses for goods and services didn’t budge at all in June. That’s right—zero. Flat. Nothing. Economists were expecting a modest 0.2% increase after May’s 0.3% rise, but instead got a reality check.
Compared to June of last year, the PPI is up just 2.3%. That’s not only lower than the 2.5% forecast, but also a cooldown from May’s 2.6% increase. So much for those doomsday inflation scenarios being peddled by the usual suspects on the left.
For those unfamiliar, PPI measures the prices businesses receive for their goods and services. It’s broader than the better-known Consumer Price Index (CPI), since it includes prices paid by not just households, but other businesses and even foreign buyers. It’s often called a “wholesale” index, though technically, it’s a little more comprehensive than that.
The breakdown is even more telling. Goods prices did rise slightly, up 0.3% in June, but that was completely offset by a 0.1% drop in the services sector, which makes up a much larger portion of the economy. In other words, inflation didn’t go up; it just shifted around. No overall pressure. No surge. No meltdown. Just more evidence that the U.S. economy is holding firm.
Now here’s where it really gets good. Core PPI—which strips out volatile food and energy prices, was also flat in June. Over the past year, core PPI is up 2.6%, down from 3.0% in May. That’s a full four-tenths of a point drop. Even the so-called “super core” PPI, which excludes business margins in addition to food and energy, showed no change. Its year-over-year number ticked down to 2.5% from 2.7%.
Translation: inflation is cooling across the board, despite the gloom-and-doom warnings we’ve been hearing nonstop from economic talking heads and their allies in the media.
Even core goods prices, often the target of tariff scaremongering, rose just 0.3% in June. And those increases came from stronger demand for communication gear, manufacturing capital goods, and durable consumer products like appliances and electronics. In other words, Americans are buying, businesses are investing, and the economy is working.
No sign of any tariff-caused inflation crisis. Just a healthy realignment in pricing that reflects supply and demand, exactly how capitalism is supposed to function.
So what does all this mean? Simple: President Trump was right. Again. Inflation isn’t being driven by his trade policies or tariffs. And despite the panic from cable pundits and globalist economists, the American economy is proving resilient, productive, and stable.
It’s a refreshing change from the Democrat-run years of exploding grocery bills and $5 gas.
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