Producer prices fell unexpectedly in June, the first decrease in five months, as a result of declines in fuel and food costs, reported Bloomberg News.

Prices paid to U.S. producers declined 0.2 percent last month after a 0.9 percent increase in May, the Labor Department announced today. Analysts had predicted producer prices would rise 0.2 percent.

Core prices, which exclude food and energy, rose 0.3 percent, mostly from an increase in automobile prices. With gasoline costs decreasing 3.9 percent, the cost of fuel fell 1.1 percent last month. Food prices also dropped 0.8 percent because of lower costs for eggs, fresh fruit and meat.

The index is one of three inflation measures the government reports. Last week, the Labor Department announced that prices of goods imported into the United States rose 1 percent in June due to higher costs for oil and industrial supplies. Tomorrow it will report the Consumer Price Index for June, which is expected to have risen 0.1 percent after a 0.7 percent increase in May.