Led by lower food and energy costs, the Producer Price Index, or PPI for short, dropped 0.5% in June after falling 0.3% in May and 0.1% in April.

"In June, over eighty percent of the 0.5-percent decrease in the finished goods index can be traced to prices for consumer foods, which fell 2.2 percent," the Labor Department said. "Also contributing to lower finished goods prices, the index for finished energy goods declined 0.5 percent."

The PPI is the measure of inflation before it reaches consumers.

The core rate, which strips out volatile food and energy costs, inched up 0.1% in June, marking its eight straight monthly increase. Cigarette prices rose 1.4%, leading the advance. Core prices increased 0.2% in May.

Compared to June of last year, prices rose 2.8% –the smallest gain since November, after rising 5.3% in May. The core annual wholesale inflation rate increased 1.1% following a 1.3% uptick in May.

The Consumer Price Index, or CPI, is considered the more closely watched indicator of inflation as is measures prices at the consumer level — it is also the data used as the core engine for the American Inflation Calculator. The most recent reported 12-month inflation rate is standing at 2.0%. The CPI for June is schedule for release on Friday at 8:30 AM Eastern Time.

The Producer Price Index, or PPI, declined 0.1% in April after rising 0.7% in March, the Labor Department revealed. The PPI is the measure of wholesale inflation, or prices businesses (farms and factories) pay for their goods.

Aprils fall is unexpected for many analysts who were forecasting a 0.1% increase. Leading the decreases were falling energy and food prices, which respectively dropped 0.8% and 0.2%. The costs of meats, however, soared 5.1%.

Stripping out volatile food and energy costs, core producer prices rose 0.2% after two straight months of 0.1% increases.

Intermediate goods prices excluding food and energy rose 1.1% in April, which was the most since the 2.0% increase in July 2008. 30% of the advance can be attributed to higher prices for plastic resins and materials, which surged 11.4%, the Labor Department said.

Prices of core crude goods advanced 4.0% during the month.

Compared to April of last year, prices climbed 5.5%. Last month’s 12-month reading came in at 6%. The core annual wholesale inflation rate, however, increased by only 1.0% following a 0.9% pick up a month earlier.

The Consumer Price Index, or CPI, is considered the more closely watched indicator of inflation as is measures prices at the consumer level — it is also the data used as the core engine for the U.S. Inflation Calculator. The most recent reported 12-month inflation rate is standing at 2.3%. The CPI for April is schedule for release on Wednesday at 8:30 AM Eastern Time.

The Labor Department’s Producer Price Index (PPI) dropped 0.6 in February — the biggest fall since July, and after soaring 1.4% in January. The PPI measures inflationary pressures before they reach the consumer or, more technically, the wholesale price of goods leaving the factory gate. Many analysts were forecasting a monthly decrease ranging from 0.2% to 0.3%.

"Disinflation is going to be with us for a while," Julia Coronado, a senior U.S. economist at BNP Paribas in New York, said in a Bloomberg Radio interview. "That’s going to allow the Fed to stay on hold for a lot longer than the market is expecting."

Deflation is a persistent decrease in general prices, or the opposite of inflation. Falling prices may seem like good news for consumers, but only to a certain point. If prices mark sustained deflationary levels that strike below the cost to produce goods and services, further economic turmoil can ensue with production cuts, payroll reductions and deepening unemployment.

In a policy statement on Tuesday, the Federal Reserve said that it expected price inflation to remain subdued for some time.

Leading last month’s retreat was a 2.9% reduction in energy costs — the first decline in four months. About 90% of the February drop can be attributed to gasoline prices, which fell 7.4% at the wholesale level. Gasoline prices jumped 11.5% in January. Lower prices for home heating oil and liquefied petroleum gas also were factors in the finished energy goods decrease, according to the Labor Department. The cost of food rose by 0.4%.

Stripping out volatile energy and food costs, core producer prices rose by 0.1% in February after a 0.3% reading in January.

"It remains our belief that soft final demand and copious global spare capacity will keep the core PPI on a benign path," Josh Shapiro, chief U.S. economist at MFR Inc., wrote and was cited on MarketWatch.

Compared with a year earlier, producer prices gained 4.4%, marking the fourth straight increase. 12-month wholesale inflation in January came in at 4.6%. Annual core producer prices rose 1% last month, which was the same level reported in January.

The government’s more closely watched Consumer Price Index (CPI) for February is scheduled to be released on Thursday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level.

The Labor Department’s Producer Price Index (PPI), which measures inflation pressures before they reach the consumer, soared 1.4% in January after a 0.4% increase in December. Forecasts for the month ranged from 0.7% to 0.9%.

Driving prices higher were increased energy and good costs, with respective gains of 5.1% and 1.7%. The same readings in December came in at 0.7% and 0.6%. The biggest contributors to wholesale energy prices were a 11.5% advance in gasoline and 16.2% rise in home heating oil — the latter helped by colder than normal weather. Food prices were up 0.4% compared to 1.3% in December.

The core PPI, which excludes volatile food and energy prices, advanced 0.3% in January after coming in flat for December. Most economists were citing an expected increase of 0.1%. The core number suggests that the Federal Reserve will feel little pressure to increase interest rates based on the PPI.

"While pipeline pressures appear to be mounting, we do not expect them to pass through to finished goods due to high levels of spare capacity," wrote Anika Khan, an economist for Wells Fargo Securities. "As such, the Fed will continue to have the flexibility to keep short-term interest rates low."

Compared with a year earlier, producer prices rose 4.6% — the biggest increase since the start of the recession when the annual level reported in October 2008 was pegged at 5.2%. Annual core producer prices rose 1%. It was unchanged in December.

The government’s Consumer Price Index (CPI) for January is scheduled to be released on Friday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level. Common forecasts are for a 0.3% increase for the month and a core of 0.1%

The Labor Department’s Producer Price Index (PPI), which measures inflation pressures before they reach the consumer, soared 1.8% in November — the biggest gain in three months. Expectations generally ranged from between 0.8% and 1.0%. October’s PPI advanced 0.3%. (Prices declined 0.6% in September after a 1.7% increase in August.)

"The numbers were a bit higher than expected, and investors are concerned a bit, but the market is not moving too much on it because there is a low possibility that these little tickles of inflation would lead to changes in rates," Keith Springer, president of Capital Financial Advisory Services in Sacramento, California, said on Reuters.

Energy prices at the wholesale level surged 6.9% in November as compared to a 1.6% increase in October and a 2.4% decline in September. Gasoline was a big part of the increase, soaring 14.2% in the month. Energy as a whole accounted for about 75% of November’s PPI increase.

Food prices were less severe, rising 0.5% versus the 1.6% reading from the month prior. Fruits and vegetables led the increase, accounting for over 60% of the rise.

Compared with a year earlier, producer prices moved up 2.4% — their first 12-month increase since November 2008. The annual wholesale inflation rate was 1.9% lower in October.

November’s core producer prices, which excludes more volatile food and energy costs, also climbed more than expected at 0.5% — the biggest increase since October 2008. Core prices retreated 0.6% in October.

On an annual basis, core producer prices rose 1.2%. Same costs were 0.7% higher in October, which was the smallest 12-month gain since March 2004.

The government’s Consumer Price Index (CPI) for October is scheduled to be released on Wednesday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level.

The Labor Department’s Producer Price Index, which measures inflation pressures before they reach the consumer, has increased twice during the past four months. Prices declined 0.6% in September following a 1.7% increase in August.

Energy prices at the wholesale level increased 1.6% in October after a decline of 2.4% in September. Gasoline costs climbed 1.9%, accounting for almost half of the increase. Food prices also rose 1.6%, following a 0.1% decline in the month prior. Fresh and dry vegetables prices jumped 24.2% and accounted for about half of the increase.

"There is little doubt that over the last few months, inflation has picked up in the economy," wrote Dan Greenhaus, an economist for Miller Tabak & Co. who was cited on MarketWatch. "But in a general sense, the overall slack in the economy and weakness in the labor market will work to hold down broader inflation measurements over the coming quarters."

Compared with a year earlier, producer prices were 1.9% lower in October.

The 0.6% October drop in the core wholesale inflation rate was the biggest decline since July 2006 and follows a 0.1% retreat in September.

"With weak final demand and limited cost pressure, there’s no reason to see core inflation turn up here," Zach Pandl, an economist at Nomura Securities International Inc. in New York, was quoted on Bloomberg. The slower gain in core prices from a year earlier "is closer to what the Fed would like to see."

On an annual basis, core producer prices rose 0.7% versus the 1.8% reading from the month prior. The former is the smallest 12-month gain since March 2004 while the latter was the smallest since July 2007.

The government’s Consumer Price Index (CPI) for October is scheduled for release on Wednesday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level.

The latest Labor Department’s Producer Price Index number, which measures prices at the factory door and inflation pressures before they reach the consumer, follows 1.7% increase in August.

"Inflation is not an immediate concern," Ryan Sweet, an economist at Moody’s Economy.com in West Chester, Pennsylvania, was quoted on Bloomberg. "We’re probably going to see core inflation continue to soften over the next couple of months" and "this will likely keep the Fed on the sidelines for the foreseeable future."

Both food and energy prices at the wholesale level dropped in September, falling 0.1% and 2.4%, respectively. Gasoline prices fell 5.4% to account for nearly 80% of the overall decline. Heating oil plunged 9.8%.

The core wholesale inflation rate for September, which excludes volatile energy and food costs, retreated 0.1%. However, core producer prices climbed 1.8% higher than a year earlier, but that is the smallest year-over-year gain since July 2007.

In related news, last Thursday the government released the Consumer Price Index for September, which showed prices rose 0.2% last month. (See US Consumer Prices Edge Higher in September, Annual Inflation Down 1.3%.) The CPI measures inflation pressures at the consumer level.

"We are concerned about the outlook for inflation later in 2010 and this report suggests that inflation pressures may be beginning to stir in manufacturing," John Ryding and Conrad DeQuadros of RDQ Economics was quoted on MarketWatch.com.

The Labor Department’s Producer Price Index data, which measures prices at the factory door and inflation pressures before they reach the consumer, showed the bulk of the increase came from higher energy costs.

Gasoline stood out the most. Prices at the pump jumped 23% for the month. Heating-oil costs surged 21.3%. The price of food was up 0.4%. However, producer prices are actually down 4.3% compared to a year earlier. (That follows a record 6.8% 12-month decline in July.)

The core wholesale inflation rate for August, which excludes volatile energy and food costs, rose just 0.2% — although core prices have climbed 2.3% in the past year.

The government’s Consumer Price Index (CPI) for August is scheduled for release on Wednesday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level.

The Producer Price Index (PPI) rose by 1.8% in June, the biggest increase since November 2007, according to a Labor Department report released Tuesday. The PPI measures prices at the factory door and inflation pressures before they reach the consumer.

The June PPI increase follows a 0.2% rise in May when energy costs had increased 2.9%. While gasoline prices have declined in recent weeks and in particular during early July, they are not reflected in June numbers, which shows energy prices climbed 6.6% — with heating oil costs rising 15.4% and gasoline prices soaring 18.5%.

"Sharply higher gasoline prices are the primary culprit behind the jump in the headline number," Tom Porcelli, a senior economist at RBC Capital Markets in New York, was quoted on Bloomberg. For other items, he said, "the risk is skewed toward prices remaining soft over the near term."

Excluding volatile food and energy costs, the core PPI rose 0.5% following a 0.1% decline a month earlier. The figure also outpaced expectations and is more likely to increase fears over the potential for resurging inflation. However, reports show many economists feel concern there would be premature.

"We’re experiencing deflation still," said Bernard Baumohl of the Economic Outlook Group. "That’s largely because U.S. and international economies are so very weak."

The government’s Consumer Price Index (CPI) for June is scheduled for release on Wednesday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level.

The Producer Price Index (PPI) rose by 0.2% last month, according to a report on Tuesday released by the Labor Department. The PPI measures prices at the factory door and inflation pressures before they reach the consumer.

"This clearly suggests there’s no inflation yet," Anika Khan, an economist at Wachovia Corp. in Charlotte, North Carolina, was quoted on Bloomberg. Price gains are "a gasoline story… companies can’t pass on the prices because the consumer is not in a situation to pay right now."

The PPI has fallen 5.0% in the past twelve months and is the biggest year-over-year decline since 1949.

The May jump follows a 0.3% rise in April when energy prices were down 0.1% and food costs climbed 1.5%. There has since been a reversal. Food costs declined 1.6% last month while energy prices rose 2.9%. The latter was driven mostly higher by gasoline and diesel prices, which surged 13.9% and 4.5%, respectively.

The core PPI, which excludes volatile food and energy costs, fell 0.1% after a 0.1% increase a month earlier. It was the first decline since October 2006.

The government’s Consumer Price Index (CPI) for May is scheduled for release on Wednesday at 8:30 AM ET. The CPI measures inflation pressures at the consumer level.