Prices paid to U.S. wholesalers fell in October by the most in four months as the cost of energy and automobiles decreased, pointing to waning inflationary pressures.
The producer price index declined a more-than-projected 0.3 percent after a 0.8 percent gain in September, Labor Department figures showed today in Washington. Economists forecast a 0.1 percent decrease, according to the median of 74 estimates in a Bloomberg News survey. The so-called core measure, which excludes volatile food and energy, was unchanged, marking the first time without an increase since November 2010.
Retail Sales
Retail purchases climbed 0.5 percent in October after a 1.1 percent increase a month earlier, Commerce Department figures showed. The median forecast of 81 economists surveyed by Bloomberg was a rise of 0.3 percent. Purchases of electronics jumped by the most in two years.
Compared with October 2010, companies paid 5.9 percent more for goods last month, after a 6.9 percent year-over-year rise in September.
Core wholesale prices rose 2.8 percent in the 12 months ended in October, today’s report showed.
The monthly change in the PPI included a 1.6 percent decrease in the cost of light trucks and a 0.8 percent decline for passenger cars.
The volatility surrounds the introduction of new model-year vehicles and the way the Labor Department adjusts for quality enhancements.
