--US June producer prices -0.4%; core rate +0.1%
--US June producer price decline biggest since February 1999
--US June intermediate producer prices -0.1%; core -0.3%
--US June crude producer prices -6.0%; core -0.2%
--US June producer prices ex-energy +0.1%; energy prices -2.5%
--US June producer gasoline prices -3.7%; home natural gas -5.8%
--US June producer passenger car prices +0.1%;
--US June food producer prices +0.1%; prescription drugs -0.7%
--US June producer capital equipment prices +0.1%, computers -2.8%

By Andrew Williams Washington, July 13 (BridgeNews) Plunging energy prices pulled U.S. producer prices down 0.4% in June, the biggest decline since February 1999, the Labor Department reported Friday. Excluding food and energy, wholesale prices rose 0.1%, suggesting inflation pressures remain tame. Wall Street analysts polled by BridgeNews had expected producer prices to fall 0.1% and for the core PPI to gain only 0.1%.
In May, the index increased 0.1%, slightly less than the core rate's 0.2% advance.
Wholesale energy prices plunged 2.5% in June, causing most of the decline in the PPI. Excluding energy, producer prices gained 0.1%. Within the energy category, gasoline declined 3.7%, residential natural gas tumbled a record 5.8% and residential electric power fell a record 1.5%.
Food prices in June rose 0.1%, with fresh eggs dropping 13.5% and fresh and dry vegetables falling 7.2%, while beef and veal rose 0.9% and dairy products rose 1.6%. Core producer prices remained tame, with computer prices dropping 2.8%.
Passenger car prices rose only 0.1%, while heavy motor trucks fell 2.0%. However, light motor truck prices rose 0.5%. Prescription drug prices fell 0.7%, the biggest decline since January 1999.

CRUDE AND INTERMEDIATE GOODS
Providing further room for the comfort at the Federal Reserve about inflation, prices of intermediate and crude goods--which provide an insight into producer prices earlier in the production pipeline--both fell in a sign that prices are being adjusted in response to lessening demand. Intermediate goods prices fell 0.1%, while the core intermediate goods index, widely watched for signs of emerging price pressures, fell 0.3%. In May, intermediate goods prices and the core rate climbed 0.1%.
Crude prices fell 6.0%, with energy prices tumbling 11.9%. Core crude prices dropped 0.2%. In May, crude fell 2.3% and core crude prices slumped 0.2%.

WHAT WAS EXPECTED:
The PPI was below the estimates of private analysts, which ranged from down 0.3% to up 0.7%. Estimates for the core PPI ranged from down 0.1 to up 0.7%.