WASHINGTON — Falling gas and food costs pushed down overall wholesale prices in November, evidence that cheaper oil worldwide is limiting inflation.
The U.S. Department of Labor said Friday that its producer price index fell 0.2 percent in November, after rising by the same amount in October. In the past 12 months, producer prices have risen just 1.4 percent, the smallest increase in the annual rate since February. The index measures the cost of goods and services before they reach the consumer. U.S. consumers are already seeing lower prices at the gas pump, leaving them with more money to spend on other items.
Overall, wholesale gas prices plunged 6.3 percent, the steepest drop in more than two years. Food prices decreased 0.2 percent, led by sharp declines in pork, fresh fruit and dairy product costs. Excluding the volatile food and energy categories, core producer prices were unchanged last month and have risen 1.8 percent in the past 12 months.
Read Saturday's Arkansas Democrat-Gazette for full details.