WASHINGTON, Nov 19 (Reuters): US producer prices unexpectedly rose in October, but the underlying trend continued to point to a benign inflation environment that could bolster the Federal Reserve's resolve to keep interest rates very low a bit longer.
The Labor Department said on Tuesday its producer price index increased 0.2 per cent, driven by a jump in prices for services, after slipping 0.1 per cent in September.
However, the so-called core PPI, which excludes food, energy and trade services, edged up only 0.1 per cent after dipping 0.1 per cent in the prior month. "There is no inflation pressure building that could cause the Fed to want to move earlier in terms of their (rates) lift off," said Chris Rupkey, chief financial economist at MUFG Union Bank in New York.
The U.S. central bank has kept its short-term rates near zero since December 2008, and most economists expect the first rate hike in mid-2015.
US producer inflation up
FE Team | Published: November 20, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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