December retail and producer prices fall

Retail and producer prices for December fell as automobile sales and energy prices declined, data released today from the Department of Commerce and Department of Labor showed. Retail prices dropped 0.4% in December, the first time in six months the sector has seen a decline, and was attributed to a slowing of car and gas sales. Sales at furniture and home furnishing stores increased 0.6% for the month. Retail sales for the entire 2007 were up 4.2% but the performance was the weakest since 2002 according to the Department of Commerce report. Producer prices fell 0.1% last month due to energy and food prices declining and above some economists’ estimates of a 0.2% increase, according to the Department of Labor, which also noted that producer prices were up 6.3% in 2007, the largest full-calendar-year rise since 7.1% in 1981.