U.S. wholesale prices fell a seasonally adjusted 0.3% in May -- the largest decline since February -- as prices for energy and food goods fell, the Labor Department reported Wednesday.
The core rate in May, which excludes volatile energy and food prices, rose 0.2%, the seventh monthly gain in a row. Economists surveyed by MarketWatch had expected overall producer prices to fall 0.6%, and for the core to gain 0.1%.
In May energy prices fell 1.5% -- the largest decline since February -- led by a 7% decline in gasoline prices. Meanwhile, food prices fell 0.6% -- the largest decline since July -- led by an 18% decrease in the index for fresh and dry vegetables.
Over 12 months, overall producer prices are up 5.3%. The core is up 1.3% over 12 months, the largest gain since September.
Core producer prices for intermediate goods, viewed as a leading indicator of inflation, rose 0.3% in May. Over 12 months, core intermediate goods prices are up 6.1%, the largest gain since October 2008.
In April, overall PPI fell 0.1%, and the core rose 0.2%.
