Companies paid less for raw materials and factory goods in June, evidence that inflation pressures are weakening as gas prices fall. The Producer Price Index, which measures price changes before they reach the consumer, declined 0.4% in June, the Labor Department says. That’s the steepest drop since February 2010. Wholesale energy prices fell 2.8%, the biggest decline in nearly two years. Gas prices peaked in early May near $4 a gallon nationally, but fell steadily since, until July. Food prices rose 0.6% in June, mostly because of higher fruit and melon costs. Excluding the volatile food and energy categories, the so-called core index rose 0.3%, driven largely by a jump in prices for pickup trucks. The core wholesale price index has risen 2.4% in the past year, the department said. That’s up from a 2.1% increase in the 12 months ending in May.
Today’s poll question: Have you noticed any change in food prices since the start of the year?
