December wholesale prices down the most in three years on plunge in oil prices

Washington

WHOLESALE prices in the US declined in December by the most in three years, showing little sign that inflation is bubbling up amid plunging energy costs. The 0.3 per cent decrease in the producer price index (PPI) was the biggest since October 2011 and followed a 0.2 per cent drop the prior month, a Labor Department report showed on Thursday. Over the past 12 months, wholesale prices rose 1.1 per cent.

A sustained plunge in energy prices is keeping a lid on inflation throughout the pipeline, from bills for businesses to the consumer's cost of living. Weak price growth has convinced Federal Reserve officials to remain "patient" in their timing of the first interest rate increase since 2006 after ending monthly asset purchases three months ago.