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US producer prices drop 0.3% from May to June on lower energy prices, but outlook is cloudy
By Paul Wiseman, Associated Press at KSAT 12 (ABC affiliate)
· July 15, 2026
· 2 min read
U.S. wholesale inflation fell from May to June on plunging energy prices, but intensifying hostilities with Iran are clouding the outlook.The Labor Department reported Wednesday that its producer price index — which captures inflation before it reaches consumers — dropped 0.3% from May, biggest d...
Key takeaway The Labor Department reported Wednesday that its producer price index — which captures inflation before it reaches consumers — dropped 0.
Why this matters in The San Antonio
San Antonio businesses and residents are likely to feel the effects of fluctuating energy prices, given the city's significant role in the Texas oil and gas industry. The recent drop in wholesale inflation, driven by lower energy prices, may bring temporary relief to local companies and consumers. However, the ongoing tensions with Iran and the resulting blockade in the Strait of Hormuz threaten to drive energy prices back up, potentially offsetting any gains. This volatility could have a disproportionate impact on San Antonio's economy, where many residents are already struggling with the high cost of living. As the Federal Reserve considers its next moves on interest rates, San Antonio will be watching closely to see how these decisions affect the local job market and overall economic growth. The city's diverse economy, which includes major industries like healthcare and financial services, will also be influenced by the Fed's preferred inflation gauge, the personal consumption expenditures index.
About this story
Original reporting by KSAT 12 (ABC affiliate) . The San Antonio surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSAT 12 (ABC affiliate) . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: July 15, 2026 ·
Source: KSAT 12 (ABC affiliate) ·
Reading time: 2 min
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Frequently asked about this story
What is this story about? U.S. wholesale inflation fell from May to June on plunging energy prices, but intensifying hostilities with Iran are clouding the outlook.The Labor Department reported Wednesday that its producer price index — which captures inflation before it reaches consumers — dropped 0.3% from May, biggest d...
When was this published? This article was first published on July 15, 2026 by KSAT 12 (ABC affiliate) and curated for The San Antonio readers.
Who reported this story? This story was reported by Paul Wiseman, Associated Press at KSAT 12 (ABC affiliate). To learn more about how The San Antonio selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The San Antonio, or browse our daily briefing and topic hubs .
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