US Wholesale Prices Fall 0.6%, Biggest Decline In 5 Years

U.S. wholesale prices fell 0.6% in February, the biggest decline in five years, led by a sharp drop in energy costs.

The Labor Department said the decline in its producer price index, which measures price pressures before they reach the consumer, followed a 0.5% rise in January. It was the sharpest decline since a similar 0.6% drop in January 2015.

Core inflation, which excludes energy and food, was also down in February, dropping 0.3%. Over the past year, producer prices have risen a modest 1.3% and core prices are up just 1.4%.