WASHINGTON — Retail sales dropped 1.2% in September, the largest decline in three years, the Commerce Department reported today.

September's figures represented a 1% drop from the same period last year.

Sales for the second quarter were 0.8% higher than those from the same period of 2007.

Retail trade sales dropped 1.2% from the previous month and were 1.4% lower than in September 2007.

Gasoline station sales were up 17.8% during the second quarter compared to last year while sales at food and beverage stores were up 5.1%.

In September, auto sales fell 3.8% and department store sales declined 1.5%.

Producer (or wholesale) sale prices fell at a slower pace–0.4%–in September, in part because of a drop in gasoline prices, the Labor Department reported.

September's decline compared with a 0.9% drop in August and a 1.2% increase in July.

During September, energy prices fell 2.9%, food prices rose 0.2% and the cost of all products except food and energy rose .4%.