In June, slightly higher than anticipated, wholesale prices experienced a 0.2% increase.

• The producer price index is now up 2.6% year over year.
• In June, the rise in service fees counterbalanced the drop in product prices.
• The reading has been revised upward from the May number, which was also increased.

In June, wholesale prices increased more than anticipated, prompting Wall Street to evaluate when the Federal Reserve will be ready to lower interest rates.

The Labor Department's Bureau of Labor Statistics reported on Friday that the producer price index increased by 0.2% last month, exceeding the 0.1% increase that economists surveyed by Dow Jones had predicted. Over the past year, PPI has risen by 2.6%.

In June, the price for services rose, while the price for goods fell.

The index remained unchanged in May, according to Friday's report, which was revised to reflect a higher reading than the original release's decline of 0.2%.

Despite recent data indicating a decline in inflation, the unexpectedly high PPI reading contradicts this trend, with economists and investors placing greater importance on consumer-oriented inflation measures.

The June consumer price index came in cooler than expected on Thursday, with headline inflation declining on a monthly basis and now sitting at 3% year over year. Friday's report will provide additional details.

The central bank's next policy meeting is at the end of July, and it is expected to hold rates steady. However, traders are focusing on the September meeting as the likely time for the first rate cut.

The personal consumption expenditure price index is the Fed's preferred inflation reading, and the June PCE data will be released on July 26.