WASHINGTON: U.S. wholesale prices edged up just 0.1% in November with the economic disruption from the pandemic continuing to suppress demand and keeping inflation at extremely low levels.
The increase in the producer price index, which measures inflation pressures before they reach the consumer, followed bigger gains of 0.3% in October and 0.4% in September, the Labor Department reported Friday.
But even with those gains, wholesale prices are up just 0.8% from a year ago, far below the Federal Reserve’s target for annual price increases of 2%. The government reported Thursday that consumer prices edged up 0.2% in November with consumer prices up a modest 1.2% over the past year.
In the report on wholesale prices, the cost of food was up 0.5% after a 2.4% gain in October. Energy costs rose 1.2% after a 0.8% tick higher in November.
Core inflation, which excludes volatile food and energy costs, showed a 0.1% rise in November and a modest increase of 1.4% over the past 12 months.
The Federal Reserve, which will meet next week, has kept interest rates at record low levels in an effort to help lift the country out of the pandemic-induced recession. Analysts believe the central bank could keep its key policy rate near zero for the rates near zero for the next two years.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor
Read all the Latest News, Breaking News and Coronavirus News here
Comments
0 comment