US Wholesale Prices Take a Tumble

U.S. wholesale prices fell sharply in November as the cost of gasoline tumbled again, the government said Thursday.

The producer price index dropped a seasonally adjusted 0.8% last month, the biggest decline since May. Economists surveyed by MarketWatch had predicted a 0.5% decrease.

Minus the volatile categories of food and energy, so-called core wholesale prices rose 0.1%. The MarketWatch forecast expected a 0.2% increase.

Lower energy prices — mainly gasoline — accounted for the large drop in wholesale prices last month. The energy index slid 4.6% to mark the biggest decrease since March 2009.

Gasoline prices have fallen two straight months, at both the wholesale and consumer levels, after a late-summer runup.

The cost of food, on the other hand, rose 1.3% last month. That’s the biggest increase in a year and a half.

The cost of vegetables jumped almost 12% and beef and veal climbed 8.2%. Chicken and milk prices also rose.

Food prices are up 2.6% over the past 12 months.

MarketWatch

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

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