CNBC on-air editor Rick Santelli reported Wednesday that wholesale inflation for June came in “better than expected” in another economic win for President Donald Trump.
Appearing on “Squawk Box,” Santelli noted that wholesale prices remained “unchanged” for the month, marking the smallest increase since March. He also pointed out that core inflation—excluding food and energy—fell below economists’ forecasts.
“Strip out food and energy, it remains zero,” Santelli said. “Unchanged, zero. And that would, once again, that count towards April when we were minus 2/10ths, which by the way was the lowest inflation rate going back to April of 2020. If we strip out food, energy and trade, unchanged. That would also count towards April of this year.”
The Consumer Price Index (CPI) rose 2.7% year-over-year in June, roughly matching expectations, according to the Bureau of Labor Statistics. However, CNBC’s Rick Santelli noted that the Producer Price Index (PPI) came in below forecasts on a year-over-year basis when excluding food, energy, and trade. “That is all very good news. These numbers are less than expectations. They’re sequentially less,” Santelli continued.
Economists polled by Dow Jones had projected a 0.2% rise in wholesale prices for June, according to CNBC. But with prices holding steady and CPI figures remaining stable, the data suggests Trump’s tariffs are having only a minimal impact on the broader economy and consumer prices.
Corporate media outlets repeatedly warned that Trump’s tariffs would drive prices sharply higher, yet inflation fell to a four-year low in May. ABC News cited “experts” who claimed the tariffs would “ratchet up the global trade war” and spike consumer costs, while The Guardian similarly predicted rising prices.
A May column from CNBC stated that tariffs were “expected” to fuel inflation, but instead, inflation has steadily declined throughout Trump’s second term, leading Trump to repeatedly call on Federal Reserve Chairman Jerome Powell to begin lowering the central bank’s prime interest rate.