WORLD> America
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WORLD> America
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US October wholesale prices plunge record 2.8%
(Agencies)
Updated: 2008-11-18 23:40 That pushed the target rate for the federal funds rate, the interest that banks charge each other, down to 1 percent, matching a low seen only once before in the past half-century. The PPI report showed that energy prices dropped by 12.8 percent in October, the biggest one-month fall since a 14 percent decline in July 1986. All types of energy showed big declines with gasoline falling by a record 24.9 percent, surpassing the old mark of a 22.1 percent drop in March 1986. Home heating oil prices were down 9.6 percent, natural gas intended for home uses fell by 5.9 percent, and liquefied petroleum gas dropped by 27.6 percent, the biggest decline in more than three decades. Light, sweet crude for December delivery rose slightly Tuesday morning after falling $2.09 to settle at $54.95 a barrel Monday, the lowest since January 2007. Prices have fallen more than 60 percent since reaching a record above $147 a barrel in mid-July. Food costs edged down 0.2 percent last month, as declines in the price of milk and meats offset a big jump in vegetable prices. Excluding food and energy, the 0.4 percent increase in core prices reflected higher costs for light trucks, the category that includes sport utility vehicles. The price of tires, civilian aircraft and malt beverages also were higher, although the cost of passenger cars fell by 1.7 percent. |
