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Wholesale prices tumbled in October the first time in five months on declining energy and vehicle costs. The producer price index fell 0.2%, as prices in all but two sectors dropped, after increasing 1.1% in September, according to data released by Labor department. Passenger car costs slid the most since July 2009, down 1.6%, whereas the prices for light tracks eased 1.5%. The prices were extremely volatile for food and energy. Retail sales also slumped unexpectedly, prompted by the damages hurricane Sandy caused. The purchases lost 0.3% in October, after surging 1.3% the prior month.
"With weakened global demand, prices for most other raw materials are expected to stay in line with the third quarter. Looking ahead into 2013, expectations are for modest increases in most input costs," said John O'Donnell, chief executive officer.