U.S. producer prices drop 0.3% in October (by Steve Goldstein)

WASHINGTON (MarketWatch) - U.S. producer prices in October dropped by the largest amount in 20 months as a big drop in gasoline prices as well as the introduction of new-model-year vehicles offset a rise in the cost of eggs, poultry and medications, according to data released Tuesday. The producer price index fell a seasonally adjusted 0.3% last month, the Labor Department said. Economists surveyed by MarketWatch had predicted no change. Wholesale prices were dragged lower as a 1.4% drop in energy prices offset a 0.1% gain for finished consumer foods. Minus those two categories, so-called core wholesale prices were flat, below the 0.1% gain forecast by economists. Over the past year, wholesale costs have risen 5.9%, with the core increasing a lesser 2.8%.