U.S. Wholesale Prices Down 0.9%

Drop in energy prices pulls prices down

A sharp drop in energy costs pulled wholesale prices down 0.9% in August, the Labor Department reported on Sept. 12.

The producer price index (PPI) showed its first decline since the start of the year and the sharpest drop since October 2006. The core index which excludes food an energy -- sometimes seen as a better indication of inflation going forward -- rose 0.2% for the month. The drop in PPI came after a sharp 1.2% surge in July and 1.8% in June.

Leading the downturn was energy -- with a 4.6% decline in August after rising 3.1% in July.

Over the past 12 months, wholesale prices are up a strong 9.6%, or 3.6% excluding food and energy.

Copyright Agence France-Presse, 2008

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