A report released by the Labor Department on Wednesday showed producer prices in the U.S. unexpectedly came in flat in the month of June.
The Labor Department said its producer price index for final demand was unchanged in June after rising by an upwardly revised 0.3 percent in May.
The report also said the annual rate of producer price growth slowed to 2.3 percent in June from an upwardly revised 2.7 percent in May.
The annual rate of producer price growth was expected to edge down to 2.5 percent from the 2.6 percent originally reported for the previous month.
Producer prices came in flat in June as prices for services edged down by 0.1 percent, offsetting a 0.3 percent increase in prices for goods.
The dip in prices for services came as prices for transportation and warehousing services slumped by 0.9 percent. Prices for trade services were unchanged and prices for other services slipped by 0.1 percent.
Meanwhile, over half of the increase in prices for goods can be traced to prices for goods less food and energy, which climbed by 0.3 percent.
The report said price for energy also rose by 0.6 percent during the month, while prices for food edged up by 0.2 percent.
The Labor Department also said core producer prices, which exclude prices for food, energy and trade services, were unchanged in June after inching up by 0.1 percent in May.
The annual rate of growth by core producer prices slowed to 2.5 percent in June from 2.8 percent in May.