Wholesale Prices in U.S. Rose in November
By Bob Willis - Dec 15, 2011 8:54 AM ET .
Prices paid to U.S. wholesalers excluding food and fuel rose less than forecast in November, indicating inflation will remain contained.
The so-called core measure increased 0.1 percent, less than the 0.2 percent gain projected by the median forecast of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The producer price index climbed 0.3 percent, paced by a 1 percent advance in food expenses.
Slowing growth from Europe to Asia may restrain the cost of raw materials, while subdued job growth and stagnant wages may hold down demand in the U.S., giving companies little room to raise prices. Less inflation would validate Federal Reserve policy makers in their renewed pledge this week to hold rates “exceptionally low” at least through mid-2013.
“We are seeing some cooling in inflation,” said Julia Coronado, chief economist for North America at BNP Paribas in New York, who correctly forecast the gain in core inflation. “We’ve seen some leveling off in energy prices and that means less inflationary pressures in the pipeline.”
The number of applications for unemployment benefits unexpectedly dropped last week to a three-year low, an indication the labor market is healing, other figures from the Labor Department today showed. Jobless claims dropped by 19,000 to 366,000 in the week ended Dec. 10, the fewest since May 2008.
more at:
Bloomberg.com
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