Wholesale prices drop for 4th month in row
WASHINGTON — The government said this morning that wholesale prices sank in November for the fourth month in a row. That is likely to raise fresh fears that prices will keep on dropping, leading to a dangerous bout of deflation.
The Labor Department reported today that the Producer Price Index, which tracks costs of goods before they reach consumers, fell 2.2 percent last month as prices for gasoline and other energy prices retreated.
That followed a record 2.8 percent plunge overall wholesale prices in October.
Also, November retail sales fell for a record 5th consecutive month with weakness led by auto decline.
