Sharp Drop In Gas Prices Puts Brakes On Inflation

NPR | By Mark Memmott

Published June 13, 2012 at 8:50 AM EDT

Wholesale prices fell 1 percent in May from April thanks to an 8.9 percent plunge in the price of gasoline, the Bureau of Labor Statistics reports. The overall decrease is the largest in one month since July 2009.

Excluding the energy and sectors, prices at the wholesale level ticked up 0.2 percent.

Also this morning, the Census Bureau says that retail sales edged down 0.2 percent in May from April. There's a link between that figure and the drop in gasoline prices: The value of sales at gas stations dropped 2.2 percent in May, largely because of the steep drop in gas prices.

As Bloomberg News notes, "spending increased 0.9 percent at clothing stores and 0.8 percent at electronics chains."

Mark Memmott

Mark Memmott is NPR's supervising senior editor for Standards & Practices. In that role, he's a resource for NPR's journalists – helping them raise the right questions as they do their work and uphold the organization's standards.

See stories by Mark Memmott

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