Wholesale Prices Remain Flat After 7 Increases; Food Down

Wholesale prices remained flat in October after seven straight monthly increases as the cost of food fell for the first time since February, the government said today.

Analysts said the stability in the Labor Department’s producer price index for the first time in eight months signifies a tapering off of the effects of the summer drought, which had sent food prices up 3.5% since May.

Wholesale food prices, led by large declines for fruits, vegetables, bakery products, pasta, beef and cooking oils, fell 0.1% last month. That was their first decline since February, the Labor Department said.

Food prices had skyrocketed 1.2% in September.

Seasonally adjusted energy prices rose 0.3% last month after falling 3.3% in September. After sharp declines during the summer, natural gas rates jumped 4.6% last month while gasoline prices held steady and home heating oil prices fell 10.1%.

Wholesale prices for goods other than food and energy were unchanged last month. Automobile, home appliance, drug and children’s apparel prices fell. Prices rose for women’s and men’s clothing, household furniture, cosmetics, alcoholic beverages and prescription drugs.

Overall, wholesale prices for finished goods other than food and energy have risen 4.1% in the last 12 months, slightly less than a 4.5% increase in consumer prices over the same period.