Nov. 15 (UPI) — U.S. wholesale prices posted their largest drop in more than three years last month, according to data shared by the Bureau of Labor Statistics on Wednesday. The U.S. Census Bureau also reported Wednesday that retail and food services sales were down in October, but up 2.5% over Oct. 2022.
The Producer Price Index dropped 0.5% in October, the largest decline since wholesale inflation dropped 1.2% in April 2020.
PPI increased 1.3% over the past 12 months after rising 2.2% on a yearly basis in September.
Prices for goods fell 1.4% in October as the BLS 80% of the decline was the result of a 15.3% drop in gasoline prices.
“The indexes for diesel fuel; hay, hayseeds, and oilseeds; home heating oil; liquefied petroleum gas; and light motor trucks also fell,” the agency said.
The BLS said prices for services measured by the PPI were unchanged in October after six straight monthly increases.
On an annual basis PPI prices for services dropped from 6.7% in October 2022 to 3.5% in October 2023.
Core inflation measured by the Consumer Price Index released Tuesday was also down to 4%, the lowest level since September 2021.
President Joe Biden said the inflation numbers showed “more progress bringing down inflation while maintaining one of the strongest job markets in history.”
Annual October to October PPI inflation — minus food, energy and trade services — was up 2.9%.
The U.S. Census Bureau said Wednesday advance estimates of U.S. retail and food services sales for October were down 0.1% to $705 billion. Year-on-year those estimates were up 2.5% from October 2022.
Total retail and food services sales August-October 2023 were up 3.1% from the same period a year ago. The August 2023-September 2023 change was revised from up 0.7% to up 0.9%.
Monthly retail trade sales were down 0.2% from September. They were up 1.6% from October 2022, according to the U.S. Census Bureau. While gasoline stations were down 7.5% from a year ago, non-store retailers were up 7.6% over October 2022.
Airline passenger services prices rose 3.1% in October, while things like chemicals and allied products wholesaling, inpatient care, outpatient care, and truck transportation of freight all moved higher.
Machinery and vehicle wholesaling dropped by 2.9%. Clothing, footwear and accessories prices along with health, beauty and optical goods were also down.
“The broad-based October decrease was led by prices for unprocessed foodstuffs and feedstuffs, which moved down 3.1%,” the BLS statement said. “The indexes for unprocessed energy materials and for unprocessed nonfood materials less energy also fell, 0.3% and 0.4%, respectively. For the 12 months ended in October, prices for unprocessed goods for intermediate demand decreased 14%.”
PPI prices for primary basic chemicals jumped 13% while diesel fuel fell 12%.