RTRS: US October producer prices fall by record 2.8 pct
WASHINGTON, Nov 18 (Reuters) - U.S. producer prices declined by a record 2.8 percent in October after energy prices slumped, government data on Tuesday showed, but a key measure of core inflation at the farm and factory gate rose by more than forecast.
The Labor Department said the producer price index recorded its third consecutive monthly reduction after a 0.4 percent fall in September and a 0.9 percent drop in August.
Analysts polled by Reuters had forecast a 1.8 percent decline in the overall number. Over the last year the producer price index has increased by 5.2 percent.
Core producer prices excluding food and energy costs rose by 0.4 percent in October, versus expectations for a 0.1 percent increase, and were up 4.4 percent over the last 12 months, the steepest increase since 1989.
Energy prices dropped 12.8 percent in October, the largest decline in 22 years, while gasoline slid by a record 24.9 percent. (Reporting by Alister Bull, Editing by Andrea Ricci)
