The surprising report offers a hopeful outlook for future consumer prices

By Mark Huffman of ConsumerAffairs

• The Producer Price Index (PPI) for final demand was flat in June, following a 0.3% rise in May and a 0.3% drop in April.
  

• A 0.3% increase in goods prices offset a 0.1% decrease in services prices for the month.
  

• The core PPI (excluding food, energy, and trade services) remained unchanged in June but rose 2.5% year-over-year.
  

Tuesdays release of the Consumer Price Index showed a one-month 0.3% increase in the prices consumers paid in June. But Wednesdays release of the Producer Price Index was something of a surprise, showing inflation largely disappeared at the wholesale level last month.

Thats significant for consumers because it suggests there is little pressure to push consumer prices up in the near future, despite concerns about tariffs.

The U.S. Bureau of Labor Statistics reported today that wholesale inflation, as measured by the Producer Price Index (PPI) for final demand, was unchanged in June on a seasonally adjusted basis. The reading follows a 0.3% increase in May and a 0.3% decline in April, pointing to a cooling yet uneven inflationary trend in the producer market.

Over the past 12 months, the PPI rose 2.3%, a moderate increase that may offer the Federal Reserve some reassurance as it gauges future interest rate policy.

Goods offset weakness in services

The flat monthly PPI reading in June masks underlying movement in its two primary components: goods and services. Prices for final demand goods climbed 0.3% in June, the sharpest gain since February, led by a 0.3% rise in core goods, excluding food and energy. Energy and food prices also ticked upward by 0.6% and 0.2%, respectively.

Some price increases included:

• Communication and related equipment: up 0.8%
  

• Gasoline and electric power: higher
  

• Poultry and meat products: slightly higher
  

However, some categories saw steep declines. The price of eggs plunged by 21.8%, and materials such as natural gas liquids and thermoplastic resins also dropped.

On the services side, the index declined by 0.1%, a reversal from Mays 0.4% gain. The decline was primarily due to:

• A 4.1% decrease in traveler accommodation services

• Lower prices in automobile retailing, deposit services, airfare, and food and alcohol wholesaling

Economic outlook

The PPI report adds to a growing body of evidence that inflationary pressures at the wholesale level are stabilizing. With services pricing showing some signs of softness and goods prices rebounding modestly, analysts say the Federal Reserve is likely to maintain a cautious stance in its policy decisions.

While data in the PPI are encouraging, its retail prices that will affect consumers. Economists will now turn their attention to the CPI and other macroeconomic data for further clues on the direction of inflation and interest rates in the second half of the year.

Realtor.com reports a spike in people searching for homes outside their metros

By Mark Huffman of ConsumerAffairs

• Nearly 59% of home shoppers in major U.S. metros searched outside their local markets in Q2 2025up from 48.1% in 2019.
  

• San Jose, Washington D.C., and Seattle saw the highest outbound search rates, largely driven by affordability challenges.
  

• Once-popular pandemic boomtowns like Phoenix, Spokane, and McAllen are now seeing increased outbound traffic as prices rise and work-from-home policies shift.

During the COVID-19 pandemic, there was The Great Migration, as remote work allowed employees to live just about anywhere. Now, unaffordable home prices appear to have triggered The Great Migration 2.0.

Real estate platform Realtor.com has noticed an emerging trend: more people searching for homes on its site are looking outside their current metros. In the second quarter of 2025, 58.9% of online shoppers in the 100 largest U.S. metropolitan areas searched for homes outside their current metros, up from 48.1% in 2019.

While affordability remains the chief motivator, other factors, such as return-to-office mandates, changing job opportunities, and evolving lifestyle preferences, are also shaping these decisions. Danielle Hale, chief economist at Realtor.com, noted that while search activity slowed year-over-year, Americans are still more likely than before the pandemic to explore new locations.

As regional housing trends diverge, Hale said, home shoppers tapped the brakes compared to a year ago, but accelerated their searches elsewhere compared to 2019.

High-cost metros lead the outbound trend

Big urban centers top the list of places residents are most eager to leave. San Jose, California, leads with 93.7% of shoppers looking at homes elsewhere, and more than one-third of that activity aimed outside the Golden State altogether. Washington, D.C. (86.4%), Seattle (80.5%), and Salt Lake City (77%) followed closely behind.

Chicago, Boston, and New Yorklongtime economic hubshave now joined the top 10 metros with the highest out-of-market search rates. Rising home prices and increasing unemployment are likely contributing factors, as Bostons median listing price surged by 42.5% over six years, and New York saw prices climb more than 32%.

Cities that surged in popularity during the early days of the pandemic, thanks to remote work and low housing costs, are now seeing an exodus. In Phoenix, out-of-market searches jumped 28.5 percentage points since 2019. Spokane, Washington, and Fresno, California, experienced similar increases of 27.7 and 21.3 points, respectively.

McAllen, Texas, once a poster child for affordable housing, saw a 30-point surge in outbound search activity, with many residents now eyeing larger job markets like Austin and San Antonio.

Economic strains fuel migration

Nine out of the ten metros with the largest six-year increases in outbound searches also saw home prices spike by more than 27%. Spokane led with a 47.9% increase, while Boston and Fresno werent far behind.

Unemployment has risen as well: for example, Chicago's jobless rate climbed from 3.5% in May 2019 to 4.6% in May 2025.

Amid the broader trend, a few metros have retained or even increased their local shopper loyalty. San Francisco saw a 6-point drop in outbound search activity since 2019, perhaps due to signs of affordability improvements relative to nearby areas. Portland, Houston, Detroit, and Honolulu also saw declines in the share of residents looking elsewhere, suggesting that a blend of affordability, job opportunities, and quality of life may be keeping locals engaged.

San Franciscos home prices rose only 4% over six years, far below other major cities. Honolulu, in fact, saw prices decline by 4.1%.

A survey shows that medical bills are feared the most

By Mark Huffman of ConsumerAffairs

• 55% of Americans fear unexpected medical bills the most, followed by 53% who worry about job loss.

• Nearly 1 in 2 Americans have delayed major life milestones due to financial struggles.

• The average American has $9,899 in emergency savings, but 1 in 16 has less than $500 saved.

Surveys have shown that more than 50% of Americans essentially live paycheck to paycheck, meaning an unexpected expense is a big problem. A new survey by Western & Southern shows just how fragile many household budgets are.

According to the survey, a majority of Americans now say their greatest financial fear is being hit with an unexpected medical bill, cited by 55% of respondents. Job loss closely follows at 53%.

These concerns are grounded in real vulnerability: 2 in 5 Americans admit they're least prepared to handle a medical emergency, while over one in three say they're unready for the possibility of unemployment.

Generation Z (ages 1827) stands out as the most financially fragile. A signifficant 44% report they couldnt afford sudden medical costs, and 38% feel unequipped to weather a job loss. Their peers in the millennial and Gen X demographics arent far behind.

Stress, delayed milestones and career strain

This financial unease extends beyond bank accounts into nearly every corner of American life. About 69% of respondents say money worries have impacted their mental health, a figure that jumps to 76% for Gen Z.

Relationship tension was reported by nearly half (47%) of all participants, while 43% said financial stress affected their job performance or career choices. Among Gen Z, the toll is even more severe: 62% experienced strain in relationships and 60% said their work was impacted.

Nearly half (48%) of Americans have postponed major life events due to financial constraints, from buying a home to starting a family or switching careers. Millennials reported the highest rate of delay, with 56% deferring significant milestones.

Emergency savings

While the average American has $9,899 saved for emergencies, that number masks troubling disparities. One in 16 has less than $500 stashed away, and more than a third couldn't handle an unexpected $1,000 expense out-of-pocket.

Generation Z is especially at risk. Their average emergency savings total just $7,317, and nearly 1 in 5 say theyd exhaust their funds in under a month without income. By contrast, 52% of baby boomers say they could survive six months or more.

Despite this, younger generations are more optimistic about their financial future. Forty-two percent of Gen Z and 38% of millennials say they feel more financially secure than they did five years ago, a sharp contrast to 42% of Gen X, who feel less prepared today.

Side hustles and borrowing

To cope with economic uncertainty, many Americans are diversifying their income streams. Sixty percent have taken on second jobs or side hustles, with Gen Z leading the charge at 68%.

Still, when emergencies hit, not everyone can rely on their savings.Thirty-seven percent of Americans have borrowed an average of $4,300 to cover unexpected expenses. Gen Z was again the most affected, with 39% reporting a serious financial crisis in the past year.

When asked how theyd cover emergency costs, Gen Z was least likely to use credit cards (41%) and most likely to borrow from family or friends (38%).

Insurance company debunks some of the myths surrounding insurance

By Mark Huffman of ConsumerAffairs

• Car color does not influence the cost of auto insurance; despite popular belief, factors like make, model, safety record, and driver profile are what determine your rate.

• Older and experienced drivers typically pay lower premiums, and those over age 55 can access special discounts.

• Comprehensive coverage and the right liability limits are essential for full protection, debunking myths about minimum coverage and assumed inclusivity for theft or natural disasters.

Auto insurance has emerged as a major inflation driver and a persistent pain point for consumers, as rates continue to climb and some companies pull out of climate-prone states. Mercury Insurance, based in California, recently called out some persistent myths, saying the more consumers know how insurance works, the better off theyll be.

Theres a lot of misinformation out there when it comes to auto insurance, said Justin Yoshizawa, director of Product Management State for Mercury Insurance. We want to help consumers separate fact from fiction so they can make smart, informed decisions when shopping for coverage.

Among the most pervasive myths debunked by Mercury Insurance is the mistaken belief that a cars color influences insurance costs. Despite long-standing rumors, whether a vehicle is a flashy red or a muted white, color plays no role in how insurers determine premiums.

Instead, rates are calculated using more meaningful information such as the vehicles make, model, safety record, and likelihood of theft, alongside the drivers age, driving history, and sometimes credit background.

Older drivers often pay less, not more

Age is another misunderstood factor. Contrary to the myth that premiums rise as drivers grow older, Mercury Insurance maintains that rates typically decrease with experience, with drivers in their mid-50s often enjoying the best prices.

Seniors may see premiums increase later in life, but can access discounts, such as those for drivers over 55 who complete approved accident prevention courses. Retirees and part-time drivers, who log fewer miles, are also frequently eligible for lower rates.

Mercury also addressed the influence of credit scores on auto insurance rates. A drivers credit-based insurance score, derived from their credit history, can affect premiums, as its considered a solid indicator of claims risk. Those with strong credit often pay less.

Another widely held misconception is that comprehensive coverage is included or that basic insurance will always cover events like theft, vandalism, or natural disasters. In reality, only drivers who opt for both comprehensive and collision coverage are fully protected from these risks. Consumers are urged to assess whether the additional coverage is worth the investment based on their cars value.

Liability coverage

Relying solely on state-mandated minimum liability coverage also poses risks. Mercury Insurance and industry experts recommend drivers opt for more substantial liability protectionas much as $100,000 per person and $300,000 per accidentto avoid significant out-of-pocket expenses after a major collision. People with considerable assets are advised to consider an umbrella policy for additional security.

Further, insurance follows the car, not the drivera fact that disproves the idea that a friends policy will cover your car if they are involved in a crash. Generally, its the car owners policy that pays, though state laws vary.

Lastly, business use of a personal car is typically not covered by personal auto insurance. Those using their vehicles for work or sharing them with employees should secure commercial vehicle insurance.

Select school supplies are priced under $1

• Walmarts back-to-school sale features over 200 rollbacks and 2,000+ items under $10, with full supply lists starting under $10.

• Budget-friendly school lunch bundles let parents pack 10 lunches for under $20, with one-click shopping available.

• Parents can get everything on their childs school supply list with one click for under $10.

With retailers like Target and Dollar General preparing for the back-to-school season, Walmart is the latest big-name store to announce its back-to-school sale.

Some of the highlights: a full back-to-school stock-up for under $65 and school supplies at lower prices than last year.

We understand how important it is for families and teachers to save time and money when preparing for the school year, Denise Incandela, executive vice president, Fashion, Walmart U.S., said in a news release.

As the go-to destination for back-to-school shopping, were proud to offer another year of incredible value including school supplies, must-have styles and essentials.

School supply checklist

Walmart is offering school supplies at prices lower than last year, and heres a look at some of the deals:

• More than 200 back-to-school rollbacks

• 100+ supplies priced under $1

• 1,000+ supplies priced under $5

• 2,000+ supplies priced under $10

On top of that, shoppers can get Walmart's back-to-school essentials list which is priced under $10 with just one click. Heres whats included:

• Pen+Gear 5-inch Blunt-tip Kids Scissors, School Supplies, Multi-Purpose, Blue: $0.92

• Pen+Gear Crayons, Assorted Colors, 24 Count: $0.25

• Pen+Gear Pink Block Erasers, 2 Count: $0.47

• EXPO Dry Erase Markers, Chisel Tip, Black, 2 Count: $2.47

• Pen+Gear Wide Ruled Filler Paper, 10.5" x 8", 150 Sheets: $0.97

• Pen+Gear School Glue Sticks, Washable/Disappearing Purple, 0.21 oz 2 Count, Dry Time 3 Min: $0.25

• Pen+Gear Sharpened Colored Pencils, Assorted Colors, 12 Count: $0.50

• Pen+Gear Letter Size 3-Prong Paper Folder, Green: $0.25

• Pen+Gear Wide Ruled 1-Subject Notebook, 8" x 10.5", Blue, 70 Sheets: $0.45

• Pen+Gear Pocket Highlighter, Chisel Tip, Yellow, 2 Count: $0.88

• Pen+Gear #2 HB Unsharpened Wood Pencils, Yellow, 24 Count: $0.92

• Pen+Gear Lightweight Plastic Pencil Box with Snap-on Lid, Clear, 1-Pack: $0.97

Pack lunches for less

In addition to supplies, Walmart also has deals on school lunch favorites.

Similar to the school supply checklist, shoppers can take advantage of Walmarts one-click kids lunch essentials. The list includes everything you need to make 10 school lunches for under $20. Heres what you get:

• Great Value Concord Grape Jelly, 18 oz: $1.98

• Great Value White Sandwich Bread, 20 oz: $1.42

• Great Value Creamy Peanut Butter, 16 oz: $1.94

• Fresh Banana, Each: $0.28/each ($2.80 total)

• Smartfood Popcorn White Cheddar Flavored Popcorn Snacks, 0.625 oz Bags, 10 Count Multipack: $5.37

• Welch's Fruit Snacks, Mixed Fruit, 10 Count Snack Box, 0.8oz Snack Packs, Gluten Free: $2.97

• Capri Sun Roarin' Waters Fruit Punch Wave Flavored Water Kids Drink Pouches, 10 Ct Box, 6 fl oz Pouches, Crisp, Light, Thin: $2.68

Walmart also has other one-click food options depending on your needs and preferences, including a healthier lunch option (under $20), a dorm food basket (under $50), and a snack stock-up (under $25).

All of Walmarts back-to-school deals are available online and in-store, as well as with any pick-up or delivery option.