WASHINGTON, Dec 12 (Reuters) - U.S. producer prices fell slightly more than expected in November as energy costs slumped for the fourth consecutive month, government data showed on Friday, providing further evidence that price pressures were abating sharply. The Labor Department said the producer price index fell 2.2 percent, also posting its fourth straight monthly decline. The index dropped 2.8 percent in October, which was the biggest monthly decline on record. Analysts polled by Reuters had forecast a 2.0 percent decline in the headline number. Compared to the same period last year, the producer price index rose by 0.4 percent, the lowest reading since January 2007, braking sharply from a 5.2 percent increase in October. Core producer prices excluding food and energy costs increased by 0.1 percent in November, matching market expectations and slowing from October's 0.4 percent increase. Core producer prices were up 4.2 percent over the last 12 months. Energy prices dropped 11.2 percent in November, falling for the fourth straigth month, while gasoline prices plunged by a record 25.7 percent. (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)

Source