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

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.