Create a free account to continue

Producer Prices Fall 0.7% in November

The Bureau of Labor Statistcis reported that the Producer Price Index dropped 0.7%

Edited from Bloomberg News and

Producer prices fell by the most since a 1.5% drop in April 2003, according to the Bureau of Labor Statistics, reinforcing that the eocnomy is growing and inflation is in control. The 0.7% drop in November prices reflected a 4% fall in energy prices, which came after four months of sizable gains related to higher global oil prices and hurricanes Katrina and Rita, which caused widespread shutdowns of oil wells and refineries along the Gulf Coast.

This decrease followed a 0.7% rise in October and a 1.9% gain in September.

Prices for finished goods other than foods and energy increased 0.1%, after decreasing 0.3% in the preceding month. At the earliest stages, the index for intermediate goods fell 1.2% following a 3.0% rise in the prior month. Crude goods prices moved down 1.2%, after advancing 6.7% in October.

Car prices fell 0.8% last month after a 3% decline in October. Food prices rose 0.5% following a 0.1% decrease in October, the government said.

"Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained," Fed policy makers said Dec. 13 in a statement as it raised rates for the 13th straight time since June 2004.