December 12, 2008

Producer prices dropped in November

U.S. producers paid 2.2 percent less for finished goods in November, the U.S. Labor Department said Friday.

November's price declines follow a drop of 2.8 percent in October and 0.4 percent in September. In the month, core inflation for manufacturers, excluding food and energy costs, rolled back 0.1 percent. Indeed, energy prices led the decline with a monthly drop of 11.2 percent, following a 12.8-percent drop in October.

Prices paid by producers for natural gas dropped 4.6 percent in November following a drop of 5.9 percent the month earlier. Gasoline prices fell 25.7 percent while the heating oil index dropped 23.3 percent after falling 9.6 percent in October.

Overall, food prices were unchanged in November for producers. Beef prices rose 6.3 percent following a decline of 8.8 percent in October. In contrast, prices for young chickens fell 0.9 percent after climbing 5.9 percent in October.