US wholesale prices decline more than expected in September

US producer price index (PPI) declined more than expected in September, data released on Wednesday showed.

According to the Labor Department, wholesale prices declined 0.5% month-on-month in September driven lower by the sharpest drop in gasoline prices since January.

The drop was bigger than the 0.2% decline analysts had forecast and was also lower compared to the flat reading registered in the previous month.

Over the last 12 months, overall producer prices have declined 1.1% and the year-on-year increase has remained in negative territory for the last eight months.

The Labor Department added that excluding the volatile categories of food, energy and trade, core prices slid 0.3% month-on-month, compared with a 0.1% gain in August and forecast for an unchanged reading.

On a year-on-year basis, PPI excluding food, energy and trade grew 0.5%, down from the 0.7% gain in August and short of analysts’ expectations for a 0.8% increase.