U.S. Producer Price Index dropped 0.3% in October, was unchanged including food and energy; dip in PPI was first decline since June, indicating inflation pressures are easing

WASHINGTON , November 15, 2011 () – Companies paid less in October for gas, new cars and other goods, driving down wholesale prices for the first time since June. The report indicates inflation pressures are easing as the cost of oil and other commodities has declined.

The Labor Department says the Producer Price Index, which measures price changes before they reach the consumer, dropped 0.3 percent in October, after a rise of 0.8 percent in September. Excluding the volatile food and energy categories, the core index was unchanged for the first time in 11 months.

Falling energy prices drove the overall decline. Wholesale gas prices dropped 2.4 percent, while home heating oil fell 6 percent, the most in over a year.

Food prices ticked up 0.1 percent, after four months of much larger increases.

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