producer price index

U.S. Wholesale Inflation Still Mild Despite Increase

U.S. wholesale prices rose only slightly in January after three straight declines, the latest sign that inflation is posing no threat. It means the Federal Reserve has room to keep interest rates at record lows without worrying about igniting inflation. The Labor Department said Wednesday that its producer price index rose 0.2 percent last month, the first increase since September. Gasoline and other energy prices fell, while food prices jumped 0.7 percent after dropping sharply in December.

How Much Should You Worry About Inflation?

The inflation bells are ringing. You've seen the jump in prices at the grocery store, and, maybe more significantly, at the gas pump. But are these price hikes a sign that inflation is about to take off, or are they just temporary increases? Here's what you should know about inflation.

Why a Little Inflation Is a Good Thing for Americans

Inflation has inched higher in the past six months, but that's not a danger sign, but rather a harbinger of improving economic conditions and a strengthening recovery. And that, in turn, should lead to higher wages and more hiring in the year ahead.

Producer Price Index Rose 1.1% in December

Wholesale prices in December posted their biggest increase in nearly a year, lifted by more expensive energy and food costs. But most other prices were largely well behaved, suggesting inflation isn't spreading through the economy.

November's Producer Price Rise Aids the Deflation Fight

Led by a jump in energy, producer prices rose 0.8% in November -- a gain that suggests policymakers may be winning their battle to avoid deflation. It's the straight monthly rise. However, minus energy and food increases, inflation pretty much vanishes.

Retailers Cut Corners to Avoid Apparel Price Hikes

Expect your T-shirts to get a little bit thinner next year -- and maybe even a little more expensive. Apparel retailers are looking high and low for ways to keep from passing on too much of their own rising costs to consumers. The trick: Doing it without compromising on quality.

October's 0.4% PPI Increase: Enough for the Fed?

Producer prices rose less than expected, with much of the increase coming from energy prices. Excluding food and energy, the PPI fell 0.6% in the month. Overall, wholesale prices are up just 1.5% in the past year -- still too close to deflation for the U.S. Federal Reserve.

Mild Producer Price Hikes Ease Deflation Concerns

Producer prices rose a higher-than-expected 0.4% in September, but the core rate rose just 0.1%, the Labor Department said. The price increases point to a low-inflation environment, easing concerns that the world%u2019s largest economy will lapse into a dangerous deflationary spiral.

Producer Prices Rise on Higher Energy Costs

Producer prices rose a slightly higher-than-expected 0.4% in August, but the core rate, which excludes food and energy, rose just 0.1%, the Labor Department said. The rises point to a low-inflation environment for the U.S. economy, easing concern that the world%u2019s largest economy will lapse into an unwanted period of deflation.

Investors Racing to Safety in Treasurys Could Get Burned

Investors spooked by deflation and a possible double dip could be adding much more risk in buying Treasurys at current prices than they realize. Clear evidence of collapsing prices is scant. And some shrewd investors have been exiting Treasurys even as others stream in.

U.S. PPI Ticked Up in July, Easing Deflation Concern

Producer prices, which rose less than expected in July, with the core level rising a higher-than-expected 0.3%. Low inflation -- not delfation -- is probably just what the U.S. Federal Reserve wants at this stage of the recovery.

Inflation Is Quiet. Is Deflation the Main Threat Now?

The producer price index fell 0.5% in June, but the core index, which excludes food and energy, rose 0.1%. That's about as low an inflation rate the Federal Reserve wants to see -- anything lower would amount to deflation: a destructive decline in prices that could sink the economic recovery.

Producer Price Index Falls More than Forecast

U.S. wholesale prices fell a seasonally adjusted 0.5% in June led by lower food and energy prices, the Labor Department reported Thursday. Economists expected a decline of 0.1%, according to Briefing.com. This follows a 0.3% decline in May.