Producer Prices Fall for First Time in 4 Months

Politics Reuters

U.S. producer prices fell for the first time in four months during October on lower prices for gasoline and consumer goods like passenger cars and mens clothing, a government report showed on Tuesday.

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The Labor Department said its seasonally adjusted index for prices received by farms, factories and refineries fell 0.3 percent after rising 0.8 percent in September. Economists polled by
Reuters had expected prices to fall 0.1 percent.

Excluding volatile food and energy, core wholesale prices were flat last month after climbing 0.2 percent in September. That below economists expectations for a 0.1 percent gain.

Gasoline prices fell 2.4 percent during the month, while mens apparel dropped 1.3 percent. Helping keep the core reading from turning negative, prices rose for alcoholic beverages and childrens toys.

Passenger cars fell 0.8 percent, while food prices rose 0.1 percent.

In the 12 months to October, producer prices increased 5.9 percent, decelerating from Septembers 6.9 percent advance.

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The core 12-month reading rose to 2.8 percent from 2.5 percent, the highest since June 2009.

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