Wholesale prices rose 0.2% in June, slightly hotter than expected

The PPI is a gauge of prices that producers can get for their goods and services in the open market. In June, an increase in the price for services offset a decline for goods.

The reading is an increase from the May number, which was also revised higher. Friday’s report said that the index was unchanged in May as compared to a decline of 0.2% in the original release.

The hotter-than-expected PPI reading runs counter to recent data that shows inflation declining, though economists and investors tend to put more weight on the consumer-focused inflation readings.

Friday’s report comes shortly after the June consumer price index came in cooler than expected on Thursday. The CPI actually showed that headline inflation declined on a monthly basis and now sits at 3% year over year.

The central bank’s next policy meeting is at the end of July, where it is widely expected to hold rates steady. Traders have increasingly dialed in on the September meeting as the likely time for the first rate cut.

The Fed’s preferred inflation reading is the personal consumption expenditure price index. The June PCE data is slated for release on July 26.