Producer Prices Fall Most in 20 Months

Washington, DC, Nov. 15, 2011 -- U.S. producer prices in October dropped by the largest amount in 20 months, according to the Labor Department.

A big drop in gasoline as well as a softening of auto prices prices offset higher costs for food and medicine.

The producer price index fell a seasonally adjusted 0.3% last month.

Core wholesale prices were flat, below the 0.1% gain forecast by economists.

Over the past year, wholesale costs have risen 5.9%, with the core increasing a lesser 2.8%.