Washington, DC, January 14--The producer-price index declined 0.7% in December for its biggest drop since April 2003, according to a Labor Department report. The drop came as energy prices were off 4% during the month.
The core index, which excludes food and energy items, rose 0.1%, which was half of November’s rate.
Economists had anticipated a 0.2% decline in the PPI during the month and a gain of 0.2% in the core index.
The Labor Department said that over the course of 2004, wholesale prices have risen 4.1%, which was its fastest pace in 14 years.
Food prices in December rose 0.1% in December. Prices of passenger cars dropped 0.2%. Gasoline prices dropped 11.1%.
