Producer prices fell more than expected in November as the cost of energy tumbled the most in over three years, according to a government report on Thursday that showed little inflation pressures in the economy.

The Labor Department said its seasonally adjusted producer price index slipped 0.8 percent last month, the second straight decline.

November's drop in wholesale prices was the sharpest since May.

The Labor Department said data collection was not substantially affected by superstorm Sandy.

Economists polled by Reuters had expected prices at farms, factories and refineries to drop 0.5 percent last month.

Wholesale prices, excluding volatile food and energy costs, rose a modest 0.1 percent after dropping 0.2 percent in October. Economists polled by Reuters had expected core PPI to rise 0.2 percent.

(Reporting by Jason Lange; Editing by Neil Stempleman)