U.S. Producer Prices Drop In July

By Agence France-Presse U.S. producer prices for finished goods, a measure of inflation at the wholesale level, fell 0.2% in July, dragged down by falling car and truck prices, the government said Aug. 8. Core prices, which exclude volatile food and energy costs, tumbled 0.3%. The declines are likely to remove any inflation fears when Federal Reserve policy makers meet Aug. 13. Despite mounting speculation of an interest rate cut, however, few analysts expect any action next week. Producer prices were depressed by a 1.5% fall in passenger car prices, the steepest decline since October 2001, and a 1.6% decline in light motor truck prices. Communication equipment prices dropped 1%, the largest decline since March 1988. Energy prices edged up 0.1%. Food prices also increased 0.1%. On a year-on-year basis, overall producer prices tumbled 1.1% and core prices eased 0.2%. In June, overall producer prices rose 0.1% from the previous month and core prices climbed 0.2%. Copyright Agence France-Presse, 2002