Producer Prices Fell in July

Washington, DC, Aug. 18, 2009--Producer prices fell 0.9% in July, after seasonal adjustments, as prices for energy and food dropped, the Labor Department reported Tuesday.

In a report that could further ease inflation concerns, the government said the core producer price index, which excludes volatile food and energy prices, fell 0.1% last month. Economists had expected the overall producer price index, which tracks inflation at the wholesale level, to fall 1%, and for the core to gain 0.1%.

In July, energy prices fell 2.4%, and food prices fell 1.5%. In June, the producer price index rose 1.8%, while the core rate gained 0.5%.

There has been some concern about inflation creeping into the U.S. economy in light of the massive stimulus measures adopted by Washington. However, in the past year, the producer price index has dropped a record 6.8%, the government said. The data go back to 1947. The core producer price index has gained 2.6% over the past year.