Wholesale Prices Fall in September

Washington, DC, Oct. 20, 2009--Wholesale prices dropped unexpectedly in September due to lower energy costs, as inflation remains in check amid signs of a broad economic recovery.

The Labor Department said Tuesday that the Producer Price index fell 0.6 percent last month. Wall Street economists expected a flat reading. The drop comes after a steep rise in August.

In the 12 months ending in September, the index dropped 4.8 percent, more than analysts expected and the 10th straight month of annual declines.

Excluding volatile food and energy costs, the core index fell 0.1 percent in September. In the year ending last month, the core rose 1.8 percent. Both figures were below analysts' forecasts.