U.S. Wholesale Prices Unexpectedly Show First Drop Since 2016

U.S. wholesale prices fell in December for the first time in more than a year on declining costs for services, a potential sign that inflation pressures are easing in the economy, a Labor Department report showed Thursday.

Most of the monthly drop in the PPI reflected a 0.2 percent decline in the cost of services, while goods prices were unchanged. A drop in the index for automotive fuel retailing was a major driver, along with falls in costs for loan services, airline passenger services and apparel retailing.