U.S. producer prices fall by 0.5 percent in September on lower energy costs
Nathan Andrada – Fourth Estate Contributor
Washington, DC, United States (4E) – Producer prices in the U.S. declined by more than estimated last month, according to data by the Labor Department released on Wednesday, which is a reflection of a sharp drop in energy costs.
The September producer price index for final demand declined by 0.5 percent after staying unchanged in the prior month, the Labor Department showed. Economists had projected the index to fall by 0.2 percent.
The larger than anticipated fall in producer prices was due to the 5.9 percent drop in energy prices, following a 3.3 percent slide in August.
Food prices also dropped by 0.8 percent, which led to a 1.2 percent fall by the index for final demand goods, which marks the biggest decline since January.
Excluding prices of energy and food items, the core producer price index fell by 0.3 percent in September after a 0.3 percent increase in August. The core index had been estimated to inch up by 0.1 percent.