Summary Box: Wholesale prices drop 0.3 percent

AP News
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Posted: Nov 15, 2011 4:41 PM
Summary Box: Wholesale prices drop 0.3 percent

WHOLESALE PRICES DECLINE: Companies paid less in October for gas, new cars and other goods, driving down wholesale prices 0.3 percent. It was the first drop since June. Excluding the volatile food and energy costs, so-called "core" prices were unchanged.

INFLATION PEAKING: Inflation pressures are easing as the costs of oil and other commodities have declined in recent months.

CONSUMER BENEFIT: The drop means manufacturers and retailers have lower costs and aren't under as much pressure to raise consumer prices. That should boost consumer spending and help manufacturers' profits.