Washington, September 19--The Producer Price Index declined 0.1 percent in August, after edging up 0.1 percent in July, according to the Labor Department.
The core index, which excludes food and energy prices fell 0.1 percent in August, following a 0.1 percent rise in July.
The inflation picture painted by the report was better than economists were expecting. They were forecasting a 0.2 percent rise in overall wholesale prices and a 0.1 percent increase in core prices.
Food prices dropped by 0.2 percent in August, on top of a 1.6 percent decline.
Prices for energy rose a modest 0.2 percent in August, down from a 2.3 percent jump in July.
A drop in gasoline prices last month helped to blunt a rise in prices for home heating oil, residential natural gas, residential electric power and liquefied petroleum gas, such as propane.
