US producer prices, an indication of pipeline inflation, fell 0.4pc in November, while the core rate, excluding food and energy prices, dropped 0.3pc, the Labour Department said today. The drop in headline PPI, largely on the back of falling energy costs, was the biggest since May, while the decrease in the core rate marked the largest decline since July. The drop in both headline PPI and the core rate was unexpected, with analysts tipping the headline to remain flat and the core rate to rise 0.1pc in November Energy prices fell 1.8pc in November, led by heating oil and gasoline price declines, while food prices rose 0.3pc during the month. On a year-on-year basis, the overall PPI was up 0.9pc, while the core rate was up 0.1pc. This is the biggest year-on-year gain in the overall PPI since Sept 2001. In October, headline PPI rose a sharp 1.1pc while the core rate rose 0.5pc. For the first eleven months of the year, the PPI rose at a 1.3pc annual pace, compared to a 1.5pc fall over the same period last year. //www.fxcentre.com