U.S. wholesale prices slipped 0.4% in July, the largest drop since September 2015, according to a government report released Friday.
This was the first decline in wholesale prices in four months and follows a sharp 0.5% jump in June. Both food and energy prices slumped in July.
The median forecast of 63 economists called for a 0.1 percent advance.
The price of goods dropped 0.4% last month. Wholesale-gas prices sank 6.6% and food declined 1.1%. The cost of services was down 0.3% led by a substantial 1.3% drop in trade services.
Excluding the volatile categories of food, energy and trade, core prices were flat in July after a 0.3% gain in June.
Over the past year, overall producer prices are down 0.2% in unadjusted terms.
Separately, the Commerce Department reported that retail sales were little changed in July as rising demand for autos limited purchases of other goods.
