Wholesale prices fell 0.2 percent in February, the first decline in eight months as milder weather restrained energy costs that had surged the previous two months.
The Labor Department said Thursday the drop in its Producer Price Index was the first since an identical decline last June. The last time it was larger was in October 1994 when wholesale prices fell 0.4 percent.Energy costs dropped 0.7 percent after shooting up 2.9 percent in January and 3.7 percent in December when severe winter temperatures boosted use of furnaces and other heating equipment. It was the first drop since energy prices fell 1 percent in November.
Food prices also fell in February for the second straight month, down 0.3 percent after a 0.2 percent decline a month earlier.