Producer price index dropped in November

Dec. 13, 2013 at 10:25 AM   |   0 comments

WASHINGTON, Dec. 13 (UPI) -- The U.S. Producer Price Index for finished goods fell for the third consecutive month in November, the Bureau of Labor Statistics reported Friday.

Producer prices have dropped in six of the past 12 months, averaging less than a 0.1 percent gain per month over the past year, a sign of weak demand as strong demand tends to push prices higher.

For the second month in a row energy prices pushed the decline. In November, energy prices for producers dropped 0.4 percent, while food prices were steady. Core prices, which excludes the volatile categories of energy and food, rose 0.1 percent.

Core price gains over the past 12 months have averaged slightly over 0.1 percent.

Prices for goods in the intermediate stage of production -- down in five of the past 12 months -- dropped 0.5 percent in November after falling 0.4 percent in October.

Prices for raw materials fell 2.6 percent in November, the sharpest drop in over a year and the sixth monthly drop since December 2012.

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