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Wholesale Prices See Record Fall

Sunday, February 22nd, 2015 -- 9:13 AM

U.S. wholesale prices fell by a record amount in January, led by the biggest drop in gasoline prices in six years.

The Labor Department says that its producer price index declined 0.8 percent last month, the biggest drop in a data series that goes back to November 2009 when the government changed the calculation methods for its wholesale price index.

Wholesale prices fell a revised 0.2 percent in December and were also down 0.2 percent in November. The string of declines reflects tumbling energy costs. For January, gas prices plunged 24 percent, the biggest drop since a 25.5 percent fall in December 2008.

Excluding volatile food and energy costs, wholesale prices edged down 0.1 percent in January after a 0.3 percent rise for core prices in December.

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