Producer Prices Fall in June

Washington, DC, July 14, 2011 -- The cost of raw materials and factory goods declined in June, evidence that inflation pressures are weakening as gas prices fall.

The Producer Price Index fell 0.4% in June, the Labor Department said. That's the steepest drop since February 2010.

Wholesale energy prices fell 2.8%, the biggest decline in nearly two years.

Excluding the volatile food and energy categories, the so-called core index rose 0.3%, driven largely by a jump in prices for pickup trucks.