US wholesale prices dip in JuneBusiness | 10 Jul 2020 9:02 pm
U.S. wholesale prices fell by 0.2 percent in June as food costs dropped sharply, offsetting a big increase in energy prices.
The Labor Department said the drop in its Producer Price Index, which measures inflation pressures before they reach consumers, followed a 0.4 percent gain in May. Wholesale prices have fallen in four of the past five months.
The country has been pushed into a deep recession which is expected to see the economy shrink in the April-June quarter by a record-shattering amount. That downturn, triggered by the coronavirus pandemic, is expected to keep inflation under control.
The 0.2 percent drop in wholesale prices in June reflected a 5.2 percent decline in food costs which helped to offset a 7.7 percent jump in energy prices.
Over the past year, wholesale prices have fallen 0.8 percent.-AP