Producer Price Index Falls More than Forecast

U.S. wholesale prices fell a seasonally adjusted 0.5% in June -- the biggest decline since February -- led by lower food and energy prices, the Labor Department reported Thursday. Economists expected a decline of 0.1%, according to Briefing.com. This follows a 0.3% decline in May, indicating that so far, the government's economic stimulus efforts haven't sparked inflation.

Food prices fell 2.2%. More than half of the June decrease can be attributed to prices for fresh and dry vegetables, which dropped 21.8%. Energy prices fell 0.5%, with the gasoline index down 1.6%.

The core rate in June, which excludes volatile energy and food prices, rose 0.1%. Economists expected no change in prices, according to Briefing.com. The index has been increasing since October of last year.

Over the past 12 months, overall producer prices are up 2.8%, their third straight month of slowing year-over-year advances following a 6% increase for the 12-month period that ended in March.