The producer price index PPI, a measure of inflation at the wholesale level, was tamer than expected on Wall Street, where analysts had expected a rise of 0.1% instead of the 0.2% that it dropped in June. However the core inflation rate rose a hotter-than-expected 0.3%.
Falling energy and food prices unexpectedly put wholesale inflation into negative territory for the first time in five months. Energy prices fell 1.1%, the largest drop since January, with gasoline falling 3.9%. Food prices declined 0.8%, the largest drop since May 2006.
The report showed a 1.4% jump in car prices and personal health products showed a 1.3%.
Producer prices have now risen 3.3% over the past year with core prices up 1.8%.
Copyright Agence France-Presse, 20
