|
U.S. producer prices slipped 0.1 percent last
month, the Labor Department said on Wednesday.
While many indicators have pointed to a strengthening U.S.
economy, policymakers at the Federal Reserve are concerned that
inflation has been stuck below their 2 percent target.
Some Fed watchers believe concerns about persistently low
inflation could lead the U.S. central bank to delay interest
rate hikes expected to begin in the middle of next year.
While the Fed targets an inflation gauge prepared by the
Commerce Department that looks at consumer purchases, the
producer price report can point to inflation pressures down the
road. And Wednesday's report suggests these are generally
lacking.
Producer prices rose 1.6 percent in the year through September,
the lowest annual reading in six months and down two tenths from
August's print.
The PPI last month was dampened by a 2.6 percent decline in
gasoline prices. Food prices slipped 0.7 percent.
When stripping out volatile food and energy prices, producer
prices were unchanged during the month. However, these so-called
core producer prices rose 1.6 percent from the same month of
2013, a slowdown from August's annual reading.
(Reporting by Jason Lange; Editing by Andrea Ricci)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
