HVAC wholesale prices inched up in June, widening a five-year gap with the broader economy

U.S. wholesale prices of HVAC equipment inched up in June, even as prices fell across the broader economy, according to newly released data from the Bureau of Labor Statistics (BLS). 

What’s happening: An HVAC-specific producer price index (PPI), which measures the average change over time in the selling prices domestic manufacturers receive for their products, rose about 0.15 percent from May. 

• That puts the index up 3.2 percent year-over-year. 

Meanwhile, overall PPI — which captures wholesale price changes across thousands of goods and services economywide — unexpectedly fell 0.3 percent from May, driven by a decline in energy prices. The gauge is up 5.5 percent year-over-year. 

• Of note: Because PPI tracks wholesale prices — before they reach consumers — it’s widely seen as a leading indicator of inflation.
• The consumer price index also declined in June, falling 0.4 percent from May, the BLS reported last week.

The big picture: HVAC wholesale prices have climbed 44.5 percent over the past five years, since June 2021, while overall PPI has risen by 24 percent over the same period, according to BLS data indexed for comparison.  

• While industry-specific PPI indexes often move differently than the headline figure, that’s a gap of 20.5 percentage points.