WASHINGTON - Producer prices fell 0.5% in June, the third straight monthly decline and the largest since February, the Labor Department reported.
Core producer prices, excluding food and energy costs, edged up 0.1%, in line with economists' estimates and the eighth consecutive increase.
Economists estimated producer prices would fall 0.1% and core prices would increase 0.1%, according to the median estimate from Thomson Reuters.
For the 12-months ending in June, producer prices increased 2.8% while core prices gained 1.1%.
Most of the drop in producer prices was attributed to a 2.2% decline in prices for consumer foods. Among core goods, heavy motor truck prices increased 2.5%, the largest increase in more than three years.
Finished energy goods declined 0.5%, pulled lower by a 1.6% decline in gasoline prices. Crude energy prices increased 1.7%, mostly due to a 2.7% increase in natural gas prices.
For the three months ending in June, crude material prices fell 6.2% after increasing 8.2% in the January to March quarter.
The Labor Department will release consumer prices for June on Friday.
