August 18, 2009

Producer prices dropped in July

The Producer Price Index for finished goods in the United States fell nearly 1 percent in July, the Bureau of Labor Statistics reported Tuesday.

The 0.9 percent drop in prices follows gains of 1.8 percent in June and 0.2 percent in May, the bureau said.

Core prices, which exclude energy and food items, shrank 0.1 percent after rising 0.5 percent in June.

Energy prices in July fell 2.4 percent, while food prices for producers dropped 1.5 percent.

The figures may concern policy makers keeping an eye on falling prices that could signal an economy-stalling period of deflation.

Economists expected prices to drop 0.3 percent, a third of the actual rate.