Producer Prices Off 1.4% Core Prices Up

Washington, DC, September 18, 2007—The producer price index fell 1.4% in August, the largest drop in the index since October, according to the Labor Department. In July the index rose 0.6%.

The core index, which excludes fuel and food costs, rose 0.2%, after a 0.1% increase in July.

Economists were anticipating a decline of 0.3% decline during the month and an increase in 0.1% in the core index.

Over the past 12 months, producer prices and core prices have both risen 2.2%.

Energy prices were of by 6.6% during the month as gasoline, natural gas, heating oil and diesel fuel process all fell. Costs of intermediate goods, such as steel used in earlier stages of production, fell 1.2%.

Excluding food and energy, intermediate prices fell 0.5%.