The pullback from June’s 4.1% year-over-year reading suggests the inflationary rebound that broke a historic deflationary streak may already be losing steam. The actual figure undershot even those already-tempered forecasts, driven by a decline in month-over-month producer inflation. Meanwhile, consumer goods prices fell 0.9% year-over-year as of June. Persistent weakness in consumer goods pricing suggests domestic demand remains sluggish, which argues for continued monetary accommodation. But producer prices that are still technically rising, even if below expectations, complicate the case for aggressive easing.