Food prices at the wholesale level edged up a tiny 0.1 percent in December after rising by 0.4 percent in November. The price moderation reflected a big 26.4 percent drop in the cost of vegetables, the biggest decline since April 2002, which offset price increases in other foods.
Outside of food and energy, prices in December rose by a slight 0.1 percent, following a gain of 0.2 percent in November. This slowdown in core inflation reflected a lower auto prices which fell as automakers again offered more attractive discounting incentives.
In another report Friday, the Commerce Department said that inventories held by businesses on shelves and backlots rose by 1 percent in November. That reflected in part a slowdown in sales, which rose by only 0.4 percent after a much bigger 1.4 percent October increase.
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