WASHINGTON (MarketWatch)—U.S. wholesale prices fell 0.4% in July, the biggest drop since September 2015, according to a government report released Friday.
This was the first decline in wholesale prices in four months and follows a sharp 0.5% jump in June. Both food and energy prices slumped in July.
Economists surveyed by MarketWatch had predicted the Producer Price Index would remain flat in July.
The price of goods dropped 0.4% last month. Wholesale-gas prices sank 6.6% and food declined 1.1%. The cost of services was down 0.3% led by a substantial 1.3% drop in trade services.
Excluding the volatile categories of food, energy and trade, core prices were flat in July after a 0.3% gain in June.
Over the past year, overall producer prices are down 0.2% in unadjusted terms.
Core-wholesale prices have risen 0.8% in the same span, essentially unchanged since January.
