WASHINGTON – Wholesale prices fell for a third consecutive month as another drop in energy costs and the biggest plunge in food costs in eight years banished inflation in June.
The Labor Department says wholesale prices dropped 0.5 percent last month, following declines of 0.1 percent in April and 0.3 percent in May. Core inflation, which excludes food and energy, posted a modest 0.1 percent increase.
Economists believe the weak recovery from a deep recession will keep inflation under wraps over the next year, giving the Federal Reserve the leeway to keep interest rates low in an effort to battle weak growth and high unemployment.
