summarize the following:

U.S. producer prices barely rose in June and the annual increase in producer inflation was the smallest in nearly three years, further evidence that the economy had entered a period of disinflation even as the labor market remains tight.

The report from the Labor Department on Thursday followed news on Wednesday that consumer prices rose slightly in June. The run of softer inflation readings likely will push the Federal Reserve closer to ending its fastest monetary policy tightening campaign since the 1980s.

The U.S. central bank is expected to raise interest rates later this month after holding them steady in June.

"The Fed's expected hike at the end of the month will probably be the last of the cycle," said Bill Adams, chief economist at Comerica Bank in Dallas. "Things could still go wrong if another shock exerts new upward pressure on prices, but with the economy slowing and a modest margin of slack opening in its productive capacity, that seems less of a risk now."

The producer price index for final demand nudged up 0.1% last month. Data for May was revised to show the PPI falling 0.4% instead of the previously reported 0.3%.

In the 12 months through June, the PPI climbed 0.1%. That was the smallest year-on-year gain since August 2020 and followed a 0.9% increase in May.

Economists polled by Reuters had forecast the PPI would rise 0.2% on the month and advance 0.4% on a year-on-year basis.

Inflation is easing as supply chain bottlenecks disappear and demand for goods slows in response to higher interest rates. Last year's surge in prices is also dropping out of the calculation of annual inflation rates.

The Fed has raised its policy rate by 500 basis points since March 2022. Financial markets have priced in a 25-basis-point rate increase at the central bank's July 25-26 policy meeting, according to CME's FedWatch tool.

A 0.2% increase in the prices of services accounted for the rise in the monthly PPI last month. Services had increased 0.2% in May. They were boosted by a 5.4% surge in deposit services, including checking and savings accounts.

There were also increases in the cost of food and alcohol retailing. Wholesale hotel and motel accommodation prices rose 2.3%, while the cost of hospital inpatient care increased 0.6% and airline tickets rebounded 1.1%. But portfolio management fees dropped 0.3%, declining for a second straight month.

These services components feed into the calculation of the Personal Consumption Expenditures (PCE) price indexes, the inflation measures tracked by the Fed for its 2% target.

The cost of transporting freight by road fell 2.1% and plunged 13.7% year-on-year, the most since 2010.

Goods prices were unchanged after dropping 1.6% in May. Energy prices rebounded 0.7% while the cost of food fell for a third consecutive month. Goods prices dropped 4.4% on a year-on-year basis, the largest decline since April 2020.

Factory goods deflation and declining freight costs suggested that the economy was slowing, potentially removing the need for the Fed to raise rates beyond this month.

"This is another positive report for investors desperate to see inflation dissipate," said Jeffrey Roach, chief economist at LPL Financial in Charlotte, North Carolina.

Stocks on Wall Street were trading higher. The dollar fell against a basket of currencies. U.S. Treasury prices rose.