WASHINGTON (AP) – Inflation was limited last month because of falling gasoline and food costs that have lowered the prices that U.S. companies received for their goods and services.
The Labor Department said Wednesday that the producer price index fell 0.1 percent in September from the previous month. The index measures the cost of goods and services before they reach the consumer.
Wholesale gas prices dropped 2.6 percent. Food costs fell 0.7 percent because of lower prices for corn, soybeans and meats. The costs for light trucks and aircraft rose slightly, but broader inflation was held in check.
Excluding the volatile categories of food, energy and retailer and wholesaler profit margins, prices dropped 0.1 percent.
In the past year, producer prices have risen just 1.6 percent, slightly below the Federal Reserve’s target.