US wholesale prices drop 0.1 percent in November, led by falling gas and heating oil costs

WASHINGTON – U.S. wholesale prices dropped in November for the third consecutive month, pushed down by cheaper gasoline and home heating oil costs.

The Labor Department says the producer price index, which measures prices before they reach the consumer, declined 0.1 percent in November. This comes after decreases in October and September. Gas costs tumbled 0.7 percent last month after a steep drop in October. The costs for new cars also fell 0.8 percent in November.

Energy costs have kept inflation low over the past 12 months. Prices have risen just 0.7 percent in that period.

Excluding volatile energy and food prices, wholesale costs increased 0.1 percent in November and 1.3 percent in the past 12 months. Low inflation has enabled the Federal Reserve to continue its expansive stimulus measures.